ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. Heard learned Advocate Mr. Yuvraj G. Thakore for the petitioners and learned Senior Standing Counsel Ms. Maithili D Mehta for the Respondents.

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:-

“8(A) Your Lordships be pleased to issue an appropriate writ, order or direction to quash and set aside Assessment Order dated 12.03.2026 passed under Section 147 read with Section 250, 144B of the Income Tax Act, 1961 and bearing DIN No. ITBA/AST/S/147/2025-26/1087248328(1) being the impugned order [at Annexure-A] and

(B) Your Lordships be pleased to issue an appropriate writ, order or direction to quash and set aside Demand Notice dated 12.03.2026 ITBA/AST/S/156/2025-26/1087248431(1) being the impugned Demand [at Annexure- B];”

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

4.1. The petitioner No. 1 is a company incorporated under the Companies Act, 1956 on 31.01.2005 with its Corporate Identification Number being U26920GJ2005PLC045383, having its registered office at Survey Nos. 1071-74, Nandasan-Mehsana Road, National Highway No. 8, Kadi, Mehsana, Nandasan, Gujarat-380706. The petitioner No. 1 was engaged in the business of ceramics and manufacturing. The petitioner No. 2 is a director and shareholder of the petitioner No. 1. The petitioner No. 1 had filed the return of income under the provisions of the Income Tax Act, 1961 (for short “the Act”) for the Assessment Year 2011-12.

4.2. While the management and control of the petitioner No. 1 was under its erstwhile promoters, an Assessment Order dated 17.12.2018 was passed under Section 147 of the Act for the Assessment Year 2011-12, raising a demand of INR 2,01,86,860/- (INR Two Crore One Lakh Eighty-Six Thousand Eight Hundred and Sixty Only). The said order was assailed by way of statutory appeal before the Commissioner of Income Tax (Appeals), being CIT(A), Ahmedabad - 4/1047478/2018-19.

4.3. The petitioner No. 1 was subjected to the insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (for short “IBC”), wherein an operational creditor, M/s. True Value Paper Co., preferred Company Petition (IB) No. 175 of 2018 under the provisions of Section 9 of the IBC before the National Company Law Tribunal, Ahmedabad Bench ( for short “Tribunal”). A Corporate Insolvency Resolution Process ( for short “CIRP”) was initiated and the aforesaid Company Petition was admitted by the Adjudicating Authority vide Order dated 15.01.2019, inter alia declaring moratorium in terms of Section 14 of the IBC and appointing an Interim Resolution Professional.

4.4. The Interim Resolution Professional issued a Public Announcement on 29.01.2019 in accordance with Section 13, 15 and other relevant provisions of the IBC read with the Regulation 6 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 (for short “Regulations, 2016”) thereby inviting claims from the various creditors including financial, operational and statutory creditors (including the Income Tax Department) of the petitioner No. 1.

4.5. The Resolution Professional was formally appointed by the Tribunal vide Order dated 20.03.2019 to take over the management of the petitioner No. 1 company and steer the resolution process.

4.6. Further, under the CIRP, the Resolution Plan of M/s. Ajita Sil Chem Private Limited, the successful Resolution Applicant, for the revival of the petitioner No. 1 was approved by the Tribunal vide Order dated 20.06.2022 passed in I.A. No. 428 of 2021 under Section 31 of the IBC. The said Resolution Plan provided for the extinguishment and waiver of all liabilities, claims, and dues payable prior to the ‘Appointed Date’ as defined in the Resolution Plan. The Plan Approval Order has attained