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TMI Blog2023 (3) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... heard together and are being disposed of by this consolidated order. 3. At the outset, Shri Rasesh Shah, Ld. Counsel for the assessee stated that Ld. National Company Law Tribunal (in short 'NCLT'), Ahmedabad, vide its order dated 20.12.2022, passed in CP(IB) 38/NCLT/AHM/2020, approved by the resolution plan of IDBI Bank Limited (successful resolution applicant), in exercise of its power under section 31(1) of Insolvency and Bankruptcy Code, 2016 (in short, "I & B Code") for the insolvency resolution of the corporate debtor i.e. applicant/assessee (Sumeet Industries Limited) copy of which is placed on record. On the basis of aforesaid order, the applicant/assessee submitted and prayed that all the appeals filed by the assessee are liable to be allowed and also prayed for direction to the Assessing Officer to modify / revise / reduce / cancel the demand according to provision of section 156A of the Act. The Ld. Counsel also relied on the judgment of Hon'ble Gujarat High Court in Civil Application No. 01 of 2021, in Tax Appeal No. 875 of 2013 (Revenue's appeal) wherein it was held that appeal filed by Revenue does not survive and dismiss the same without expressing opinion on m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such notice. Further sub-Section (2) of Section 156A of the Act specified that "Where the order referred to in sub-section (1) is modified by the National Company Law Appellate Tribunal or the Supreme Court, as the case may be, the modified notice of demand as referred to in sub-section (1), issued by the Assessing Officer shall be revised accordingly." 5. The Ld Counsel has placed on record the order passed by the ld. NCLT in CP(IB) 38/NCLT/AHM/2020, dated 20.12.2022 for approving the resolution plan in assessee`s case. The ld Counsel also submitted before the Bench, the order of Hon'ble Supreme Court in Ghanashyam Mishra & Sons Pvt. Ltd. Vs. Edelweiss Asset Reconstruction Co. Ltd. (supra) and the order passed by the Hon'ble Jurisdictional High Court in Tax Appeal No. 875 of 2013 dated 24/01/2022. 6. Learned CIT-DR for the Revenue, vehemently argued that the interest of revenue may be protected and revenue may be given liberty to move appropriate application/ appeals either before this Tribunal or before NCLT. He further submits that all appeals of the assessee may be dismissed at this stage, however, a suitable instruction may be given to the assessing officer to modify the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ations of such corporate debtor as a going concern, then the supply of such goods or services shall not be terminated, suspended or interrupted during the period of moratorium, except where such corporate debtor has not paid dues arising from such supply during the moratorium period or in such circumstances as may be specified;] [(3) The provisions of sub-section (1) shall not apply to-- [(a) such transactions, agreements or other arrangements as may be notified by the Central Government in consultation with any financial sector regulator or any other authority;] (b) a surety in a contract of guarantee to a corporate debtor.] (4) The order of moratorium shall have effect from the date of such order till the completion of the corporate insolvency resolution process: Provided that where at any time during the corporate insolvency resolution process period, if the Adjudicating Authority approves the resolution plan under sub-section (1) of section 31 or passes an order for liquidation of corporate debtor under section 33, the moratorium shall cease to have effect from the date of such approval or liquidation order, as the case may be." 8. Section 14 of I & B code, 2016, cle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under section 31 could be continued." 10. From the above findings of Hon`ble High Court of Telangana in the case of Sirpur Paper Mills Ltd (supra), it is vivid that all claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not a part of the resolution plan. We also note that provisions of section 238 of the IBC which clearly says that provisions of IBC shall have an overriding effect over all other laws. This, if there is any doubt, section 238 IBC makes it abundantly clear that provisions of the IBC would prevail over the Income Tax Act. 11. The ld. Counsel for the assesses has already filed order of ld NCLT dated 20.12.2022 showing the fact that the assessee has been impleaded as Corporate Debtor before the Hon'ble National Company Law Tribunal (NCLT) Ahmedabad b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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