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.

JUDGMENT :

Mauna M. Bhatt, J.

1. Heard learned advocate Ms.Shrunjal T. Shah for the petitioner and learned Senior Standing Counsel Mr.Karan G. Sanghani for learned advocate Mrs.Kalpana K. Raval for the respondents.

2. Rule, returnable forthwith. Learned Senior Standing Counsel Mr.Karan Sanghani waives service of notice of rule for and on behalf of the respondents.

3. This petition under Article 226 of the Constitution of India is filed challenging the Assessment Order dated 12.03.2023 passed under Section 147 read with Sections 144 and 144B of the Income Tax Act, 1961 (for short ‘the Act’) and order passed under Section 148A(d) of the Act dated 23.03.2022 as well as the impugned notices dated 13.03.2022 passed under Section 148A(b) of the Act, notice dated 31.03.2022 issued under Section 148 of the Act and notice dated 12.03.2023 issued under Section 156 of the Act for Assessment Year 2018-19.

4. The brief facts are as under :

4.1. The petitioner is a company incorporated in India and are entitled to the fundamental rights guaranteed under Articles 14 and 19(1)(g) of the Constitution of India and the respondent is a State within the meaning of Article 12 of the Constitution of India and therefore, it is amenable to the writ jurisdiction of this Court.

4.2. It is the case of the petitioner that a Company Petition (I.B.) No: 148 of 2019 was fled by Operational Creditor namely, Devsaria Iron & Steel Co. Pvt. Ltd., under Section 9 of the Insolvency and Bankruptcy Code, 2016 (for short ‘the Code’) for initiation of the Corporate Insolvency Resolution Process (for short ‘the CIRP’) before the National Company Law Tribunal, Ahmedabad Bench (for short ‘the NCLT’).

4.3. Vide order dated 30.09.2019, the NCLT admitted the Company Petition (I.B.) No 148 of 2019. Accordingly, the Interim Resolution Professional (for short ‘the IRP’) Mr.Manish Kumar Bhagat invited claims against the petitioner through a pubic advertisement in Form A dated 07.10.2019. It is the case of the petitioner that subsequent to such public announcement, all the persons/departments/ companies/corporations/statutory bodies who had an outstanding amount of claim against the petitioner are under a legal obligation to lodge their claim before the IP in the prescribed form. The Income-tax Authorities lodged a claim of Rs.2,04,17,900/- pursuant to such advertisement which was admitted.

4.4. In other words, according to the provisions of the Code, every creditor/claimant of the Corporate Debtor i.e. the petitioner is under a legal obligation to lodge a claim before the IRP. It is the case of the petitioner that as per the law laid down by the Hon'ble Supreme Court in the case of Ghanashyam Mishra & Sons Private Limited versus Edelweiss Asset Reconstruction Company Limited & Ors reported in (2021) 9 SCC 657., claims of all the persons/departments/ companies/corporations who fail to lodge their claim before the IRP gets extinguished upon approval of the resolution plan as per Section 31 of the Code.

4.5. It is the case of the petitioner that after the public announcement and receipt of claims in the prescribed form, the IRP is required to form a Committee of Creditors (for short ‘the CoC’).

4.6. In accordance with the provisions of the Code, the IRP constituted a CoC. The first CoC meeting was held on 02.11.2019 wherein, the CoC decided for constitution of IRP as Resolution Professional.

4.7. In the Third CoC meeting held on 28.01.2020, the Resolution Professional presented the list of Expression of Interest (for short ‘the EoI’) received from the prospective Resolution Applicants and four resolution plans were submitted in pursuance to such EoI. A Resolution Plan essentially contains a scheme for revival of the Corporate Debtor i.e, the petitioner by paying of all dues of the creditors who have lodged their claims before Resolution Professional. It also contains relevant details such as infusion of funds by Resolution Applicant for revival of the petitioner etc.

4.8. After detailed discus