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BHARGAV D. KARIA, MAUNA M. BHATT
AUSIL CORPORATION PRIVATE LIMITED – Appellant
Versus
ASSISTANT/DEPUTY COMMISSIONER OF INCOME TAX, RAJKOT – Respondent
JUDGMENT :
MAUNA M. BHATT, J.
1. Heard learned advocate Mr. B.S. Soparkar for the petitioner and learned Senior Standing Counsel Mr. Karan G. Sanghani for the respondent No. 1.
2. Rule, returnable forthwith. Learned Senior Standing Counsel Mr. Karan Sanghani waives service of notice of rule for and on behalf of the respondent No. 1.
3. This petition under Article 226 of the Constitution of India is filed challenging the notices dated 05.04.2021 and 29.07.2022 issued under Section 148 of the Income Tax Act, 1961 (for short ‘the Act’) and order dated 29.07.2022 passed under Section 148A(d) of the Act for Assessment Year 2015-16.
4. The brief facts are as under:
4.2. It is the case of the petitioner that the petitioner was subjected to
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.
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 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.
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 approval of a resolution plan by the NCLT extinguishes all claims not included in the plan, preventing re-opening of assessments by tax authorities.
Approval of a resolution plan under the IBC extinguishes all past dues, preventing any assessment or demand for liabilities incurred prior to that approval.
Upon approval of a resolution plan under IBC, all claims not expressly included therein, including tax liabilities, are extinguished and cannot be pursued.
The approval of a Resolution Plan under the Insolvency and Bankruptcy Code extinguishes all tax liabilities, preventing the issuance of notices under Section 263 of the Income Tax Act.
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