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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C.SARAVANAN
P DOT G Constructions Private Limited – Appellant
Versus
Assistant Commissioner of Income Tax, Income Tax Department, Ministry of Finance – Respondent
| Table of Content |
|---|
| 1. petitioner's challenge regarding income tax orders. (Para 1 , 2) |
| 2. tax claims extinguished before resolution plan approval. (Para 5 , 6 , 7 , 9 , 10) |
| 3. resolution applicant's understanding of past liabilities. (Para 12 , 22 , 30) |
| 4. resolution plan limitations on tax liabilities. (Para 14 , 24 , 34) |
| 5. writ petition dismissed based on legal interpretation. (Para 97 , 110) |
ORDER :
C. Saravanan, J.
An important question of law has come up for consideration in this writ petition.
2. In this writ petition, the petitioner has challenged the impugned Order dated 31.03.2022 passed under Section 148A(d) of the Income Tax Act, 1961 and the impugned Assessment Order dated 31.03.2023 passed under Section 147 read with Section 144 of the Income Tax Act, 1961.
3. By the impugned Order dated 31.03.2022, the respondent had justified the issuance of the Section 148 Notice dated 31.03.2022 for the Assessment Year 2018-2019.
4. By the second mentioned Assessment Order dated 31.03.2023, the petitioner’s income was determined at Rs.9,00,85,178/- along with interest, and a proposal was made to impose penalties under Sections 272A(1)(d), 271AAC(1), 270A and 271B of the Income Tax Act, 1961.
5.
Tax liabilities arising during corporate insolvency resolution cannot be extinguished by a resolution plan unless explicitly provided, as affirmed by recent Supreme Court rulings.
Approved resolution plan under IBC Section 31(1) extinguishes all pre-CIRP unsubmitted statutory dues; tax reassessment proceedings post-approval are barred by Section 238's overriding effect and cle....
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities.
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.
The approval of a resolution plan under the IBC extinguishes all claims not included in the plan, including tax liabilities, ensuring a fresh start for the corporate debtor.
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