No Legal Action Including Income Tax Can Proceed by or against Party whose Liquidation Order is passed: ITAT dismisses Appeals [Read Order]

The Nagpur Bench of the Income Tax Appellate Tribunal (ITAT) ruled that no legal action, including income tax proceedings, can proceed against a party once a liquidation order is passed under the Insolvency and Bankruptcy Code (IBC). The case involved Gigeo Construction Co. Pvt. Ltd., which was undergoing insolvency proceedings. The ITAT dismissed appeals filed by both the revenue department and the assessee, citing the prohibition of legal actions against entities under liquidation. This decision reinforces the legal protection provided to companies in liquidation, ensuring that their assets are preserved for equitable distribution among creditors.