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HIGH COURT OF GUJARAT
BHARGAV D. KARIA, D.N. RAY
AMW Auto Component Limited – Appellant
Versus
Principal Commissioner of Income Tax, Rajkot – Respondent
JUDGMENT :
(D.N. RAY, J.)
1. Heard learned advocate Mr.B.S.Soparkar for the Petitioner and learned Senior Standing Counsel Mr. Karan G. Sanghani for the Respondent.
2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan G. Sanghani waives service of the notice of the rule on behalf of the Respondent. With the consent of the learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short.
3. The petition has been filed under Article 226 of the Constitution of India with the following prayers :-
“a) Quash and set aside the impugned notice u/s 263 dated 13.01.2025 at ‘ANNEXURE – A’ to this petition;
b) pending the admission, hearing and final disposal of this petition, to stay further proceedings pursuant to the impugned notice;
c) any other and further relief deemed just and proper be granted in the interest of justice;
d) to provide for the cost of this petition.”
4. The brief facts of the case are as follows:
4.1 The Petitioner is a registered company, inter alia, engaged in the business of manufacturing components for general engineering and automotive industries. The Petitioner filed the return of income on 30.11.2015 f
Tax liabilities are extinguished upon approval of a resolution plan under the Insolvency and Bankruptcy Code, preventing subsequent revision notices under the Income Tax Act.
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.
Upon approval of a resolution plan under IBC, all claims not expressly included therein, including tax liabilities, are extinguished and cannot be pursued.
Point of Law - NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be d....
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....
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 under the Insolvency and Bankruptcy Code extinguishes all prior tax liabilities of a corporate debtor, affirming the legal cleansing effect of the IBC.
Approved resolution plans under the Insolvency and Bankruptcy Code extinguish all pre-CIRP claims not included, including statutory dues from tax authorities.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities.
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