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BHARGAV D. KARIA, MAUNA M. BHATT
GSL Nova Petrochemicals Limited – Appellant
Versus
National Faceless Assessment Centre – Respondent
JUDGMENT :
(Mauna M. Bhatt, J.)
1. Heard learned Senior Advocate Mr.Tushar Hemani for learned advocate Ms.Vaibhavi K. Parikh for the petitioner and learned advocate Mr.Dev Patel for learned Senior Standing Counsel Mr.Varun K. Patel for the respondent.
2. Rule, returnable forthwith. Learned advocate Mr.Dev Patel waives service of notice of rule for and on behalf of the respondent.
3. This petition under Article 226 of the Constitution of India is filed challenging the Assessment Order under Section 147 read with Section 144B of the Income Tax Act, 1961 (for short ‘the Act’) dated 29.03.2022 and also the demand notice of even dated under section 156 of the Act, for the Assessment Year 2013-14.
4. The brief facts are as under:
4.1. The petitioner in this case is a Company incorporated under the provisions of the Companies Act, 1956. The Corporate Insolvency Resolution Process (for short ‘the CIRP’) under the Insolvency and Bankruptcy Code, 2016 (for short ‘the Code’) was initiated in the case of petitioner before the National Company Law Tribunal (for short ‘the NCLT’) and the Resolution Plan by Mr.Sunil Kataria and other was approved by Committee of Creditors.
4.2. The above referred
Approval of a resolution plan under the IBC extinguishes all past dues, preventing any assessment or demand for liabilities incurred prior to that approval.
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.
Once a Resolution Plan is approved by the NCLT, subsequent claims by creditors are barred to prevent disruption of the resolution process.
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.
Approval of a resolution plan under the Insolvency and Bankruptcy Code extinguishes all past dues, including those owed to statutory authorities, preventing further claims.
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.
Once a resolution plan is approved under the Insolvency and Bankruptcy Code, claims not included therein are extinguished and cannot be enforced, ensuring clarity for the resolution applicant.
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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