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MANMOHAN, NAVIN CHAWLA
Asian Colour Coated Ispat Limited – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
JUDGMENT
Manmohan, J. - The petition has been heard by way of video conferencing.
2. Present writ petition has been filed challenging the notice dated 31st March, 2021 issued by Respondent No.1 under Section 148 of the Income Tax act, 1961 [ 'the act'] for the assessment Year 2014-15.
3. Learned counsel for the petitioner states that the impugned notice calls upon the Petitioner/Corporate Debtor to furnish return of income for the assessment year 2014-15, which is prior to the date of approval of the resolution plan under Insolvency and Bankruptcy Code, 2016. She states that the corporate insolvency resolution process was concluded vide order dated 26th October, 2020 passed by the NCLT in the matter of State Bank of India vs. asian Colour Coated Ispat Limited in Company application No.1393 of 2018. She further states that after the conclusion of the proceedings, all the liabilities and obligations of Petitioner prior to approval of the Resolution Plan shall stand extinguished permanently from the date of the NCLT Order. In support of her submission, she relies on the judgment of the Supreme Court in the case of Ghanashyam Mishra & Sons Pvt. Ltd. vs. Edelweiss asset Reconstruction Co
The court emphasized the importance of the respondent deciding the petitioner's objections in accordance with the law before taking any further steps in pursuance of the impugned notice.
The extinguishment of liabilities under the IBC 2016 post-resolution plan approval necessitates a review of any notices issued for prior assessment years, emphasizing procedural fairness.
Approval of a resolution plan under the Insolvency and Bankruptcy Code extinguishes all past dues, including those owed to statutory authorities, preventing further claims.
All claims of the Income Tax Department are extinguished upon approval of a resolution plan under the Insolvency and Bankruptcy Code, preventing reassessment notices for periods prior to insolvency.
Once a resolution plan is approved under the Insolvency and Bankruptcy Code, no claims can be pursued for dues prior to that approval, rendering subsequent assessment orders and notices invalid.
The approval of a resolution plan by the NCLT extinguishes all claims not included in the plan, preventing re-opening of assessments by tax authorities.
Alternate remedy would not operate as a bar for invoking jurisdiction under Article 226 of the Constitution of India in at least three contingencies, namely, where writ petition has been filed for en....
The Insolvency and Bankruptcy Code's provisions override tax claims from pre-insolvency periods, barring enforcement of assessments not included in a Resolution Plan.
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