Upon approval of a resolution plan by the adjudicating authority under insolvency laws, all claims—including statutory tax dues not specifically provided for—are irrevocably extinguished, prohibiting the revenue authorities from initiating or continuing assessment proceedings for historical liabilities against the corporate debtor.

ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE PRANAV TRIVEDI)

1. Heard learned Senior Advocate Mr. Tushar Hemani assisted by learned advocate Ms. Vaibhavi Parikh for the petitioner and learned Senior Standing Counsel Mr. Dev Patel for the respondent.

2. 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 as well as impugned order at Annexure-”A (Colly.)” to this petition;

(b) Pending the admission, hearing and final disposal of this petition, stay the implementation and operation of the impugned notice as well as impugned order at Annexure-”A (Colly.)” to this petition and stay further proceedings for Assessment Year 2019-20;

(c) Any other and further relief deemed just and proper by granted in the interest of justice;

(d) To provide for the cost of petition.”

4. The brief facts of the case are as follows:

4.1. The petitioner is a company registered under the Companies Act, 1956. The petitioner had filed the return of income under the provisions of the Income Tax Act, 1961 (for short “the Act”) for the Assessment Year 2019-20.

4.2. The case of the petitioner qua Assessment Year 2019-20 was proposed to be reopened by the issuance of a notice dated 28.02.2023 under clause (b) of Section 148A of the Act.

4.3. The petitioner was subjected to the insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (“IBC”), wherein, a Corporate Insolvency Resolution Process (“CIRP”) was initiated under Section 7 of the IBC, which was admitted by the Adjudicating Authority vide order dated 05.10.2021.

4.4. An Interim Resolution Professional was appointed by the National Company Law Tribunal (for short “Tribunal”), who made a public announcement in accordance with Section 13, 15 and other relevant provisions of the IBC read with the Regulation 6 of the Bankruptcy Board of India (Insolvency Process of Corporate Persons) Regulations, 2016, (For short “Regulations, 2016”) thereby inviting claims from the various creditors of the petitioner.

4.5. Further, under the CIRP, the Resolution Plan of GSL Nova Petrochemicals Ltd., for the revival of the petitioner was approved by the Tribunal vide order dated 05.10.2021 under Section 30(6) of the IBC. The said Resolution Plan provided for the waiver and extinguishment of all the unassessed/assessed tax liabilities for the period prior to the Tribunal approval date.

4.6. The respondent has issued the impugned notice dated 28.02.2023, under clause (b) of Section 148A of the Act.

4.7. Challenging the legality of the impugned notice dated 28.02.2023 under clause (b) of Section 148A of the Act and impugned order dated 29.03.2023 passed under Section 148A(d) of the Act, the petitioner has filed this petition.

5. Learned Senior Advocate Mr. Tushar Hemani assisted by learned advocate Ms. Vaibhavi Parikh appearing on behalf of the petitioner submitted that on the approval of the Resolution Plan under Section 31 of the IBC, all dues of the Corporate Debtor except those which have been specifically provided for in the Resolution Plan would stand extinguished in terms of the provisions of the IBC and the decisions of the Hon’ble Apex Court in the case of Committee of Creditors of Essar Steel India Ltd. Through Authorised Signatory Vs. Satishkumar Gupta reported in (2020) 8 SCC 531 and in case of Ghanshyam Mishra and Sons Pvt. Ltd. Vs. Edelweiss Asset Reconstruction Company Ltd. through the Directors & Ors., reported in (2021) 9 SCC 657. Learned Senior Advoc