ITA No. 8422/DEL/2025 Narayan Industries Global Limited vs. DCIT, Circle 16(1)

Parties Involved

Facts Summary

The assessee, Narayan Industries Global Limited, filed an income return on 29.11.2016 declaring a loss of Rs.35,67,53,806/-. A notice under section 143(2) was issued on 05.07.2017 for initiation of assessment proceedings. On 27.08.2019, Corporate Insolvency Resolution Proceedings (CIRP) were initiated against the assessee under the Insolvency and Bankruptcy Code, 2016 (IBC) by the National Company Law Tribunal (NCLT). A moratorium was declared prohibiting any proceedings against the corporate debtor. An order dated 27.12.2019 was passed by the assessing officer under section 144 of the Income-Tax Act, 1961. The assessee filed an appeal before the Commissioner of Income Tax (Appeals) (CIT(A)) on 17.01.2020 against the assessment order. The NCLT approved the Resolution Plan on 28.01.2021, which extinguished any liabilities arising from assessments under process. The CIT(A) passed an order on 11.11.2025 setting aside the matter to the Assessing Officer for de-novo adjudication. The assessee appealed this order before the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Whether the Commissioner of Income Tax (Appeals) erred in not quashing the assessment order dated 27.12.2019 as being illegal and bad-in-law.
• 2. Whether the Commissioner of Income Tax (Appeals)/assessing officer erred in passing the impugned order without considering the detailed objections filed and without granting an opportunity for personal hearing.
• 3. Whether the assessing officer erred in disallowing freight and forwarding expenses to the extent of Rs.5,43,09,395 treating the same to be unexplained.
• 4. Whether the assessing officer erred in disallowing the deduction claimed under section 35(2AB) of the Act without providing any reason for the same.
• 5. Whether the assessing officer erred in making addition of Rs.35.67,53,806 under section 68 of the Act in respect of increase in sundry creditors by treating the same to be unexplained.
• 6. Whether the CIT(A)/assessing officer erred in levying/charging interest under section 234B and 234C of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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