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The insolvency and bankruptcy Code, (IBC 2016) was adopted with a view to replace the existing bankruptcy laws. It assists the creditor in initiating the insolvency proceedings against the debtor. The Supreme Court on 15 August 2018, highlighted the significance of Section 238 of the Insolvency and Bankruptcy Code, 2016, and observed that the provisions under IBC, 2018 override the provisions contained in any other enactment, including the Income Tax Act. This decision of the Supreme Court is based on various judgments. The Delhi High Court held that a moratorium under the IBC will even apply to the order of the Income Tax Appellate Tribunal. The Delhi HC while relying to the judgment passed by Supreme Court in M/s Innoventive Industries Ltd. v ICICI Bank, held in the case, PR Commissioner of Income Tax-6, New Delhi v Mannet Ispat & Energy Ltd.,that the moratorium period as announced by the National Company Law Tribunal under Section 14 of IBC, 2016 would also apply to the order of the Income tax Appellate Tribunal. In a particular case, it was observed by the bench that Section 238 of IBC,2018 will without any doubt override anything which is inconsistent contained in any other Act including the Income tax Act.
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