9911796707
TMI Blog2022 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... he NCLT, and therefore, the present income tax proceedings is hit by section 31(1) of Insolvency and Bankruptcy Code, 2016, which has overriding effect vis-a-vis. the Income Tax Act, 1961. All these events are within the knowledge of the Income Tax Department, as the OL of assessee-company has intimated the Department from time to time in writing, but no action has been taken by the Department. Once a company is dissolved it becomes a non-existent party and therefore no action can be brought in its name. Therefore, in view of overriding effect of IBC code to the Income Tax proceeding, we hold that Revenue is not entitled to recover the claim, if any arising from the present proceedings for Asst. year 2015-16, as the same is not part of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT(A) by order dated 27.12.2018. Against the confirmation of addition, the assessee is in appeal before the Tribunal. 4. When the matter was called out for hearing, Shri Umesh Ved, AR and Liquidator of the assessee-company i.e. Oasis Textile Ltd., has filed a letter dated 21.10.2021 informing the Tribunal that the assessee-company was ordered to be liquidated by the National Company Law Tribunal, Ahmedabad on 22.11.2017, and thereafter, it was further ordered to be dissolved vide order dated 30.6.2020. Contents of the letter are as follows: ........ As directed by the Hon'ble Tribunal, we would like to submit as under: M/s. Oasis Textiles Limited i.e. Corporate Debtor was admitted to Corporate Insolvency Resolu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th) Further, the undersigned submitted the written submission as directed by Tribunal on 26th October, 2021. The copy of the same attached herewith. The copies of orders and letters as mentioned hereinabove are also attached. Further, please note that in Ghanashyam Mishra And Sons Private Limited Vs. Edelweiss Asset Reconstruction Company Limited delivered in civil appeal No. 8129 of 2019 paragraph 130 and 132 state that: when the resolution plan is approved by NCLT, the claims, which are not part of the resolution plan, shall stand extinguished and the proceedings related thereto shall stand terminated. Since the subject matter of the petition are the proceedings, which relate to the claims of the respondents prior to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Department was not before Adjudicating Authority, even not part of resolution plan, and the assessee-company being non-existent as of now, the claim of the department related prior to the approval of the plan stand extinguished, and any other proceeding thereto shall also stand terminated. Shri Umesh Ved has also filed copies of orders of the NCLT passed in this connection. 6. From the above letter of OL, we would take note of chorological events took place in the case of assessee-company as under: i) NCLT vide order dated 31.5.2017 admitted the assessee-company i.e. Corporate Debtor to Corporate Insolvency Resolution Process. ii) NCLT by order dated 22.11.2017 ordered to be wound up in the absence of Resolution Plan; ii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court in the case of Ghanasham Mishra Sons P. Ltd. Vs. Edelweiss Asset Reconstruction Company Ltd. in Civil appeal No. 8129 of 2019 has held that- (i) once a resolution plan is duly approved by the Adjudicating Authority under sub-section (1) of Section 31 of Insolvency and Bankruptcy Code, 2016, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. (ii) on the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 132. The appeal therefore is allowed. The impugned judgment and order dated 6.7.2020 passed by the Allahabad High Court is quashed and set aside. We hold and declare, that the respondents are not entitled to recover any claims or claim any debts owed to them from the Corporate Debtor accruing prior to the transfer date. Needless to state, that the consequences thereof shall follow. 10. In light of the above, if we examine the facts of the case on hand, assessment year involved is 2015-16, and the AO has passed the assessment order on 27.12.2017, and the appellate order thereupon was passed on 27.12.2018. While NCLT has passed Resolution plan on 22.11.2017, and in the absence of any Resolution Plan, it was ordered to be liquidated ..... X X X X Extracts X X X X X X X X Extracts X X X X
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