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TMI Blog2024 (5) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... imited v. Assistant Commissioner of Income Tax [[2024]161 taxmann.com 285 (Bombay).]. Mr. Sen and Mr. Suresh Kumar agreed. Mr. Suresh Kumar at the same time states that Revenue's doors should not be closed and they must be permitted to take such steps as advised against the ex-promoters because the purpose of passing the orders or issuance of notices under Sections 148A/143C/143(3)/148 of the Income Tax Act, 1961 were only to take action against the ex-promoters of Respondent-company. 2. For ease of reference, the order passed in Alok Industries Limited (supra) is reproduced herein below : "1 Petitioner is challenging the notice dated 27th February 2021 issued by respondent no.1 under section 148 of the Income-tax Act, 1961 ("the Act") f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled. The closing date of the resolution plan is the date when the resolution plan has been given effect to, i.e., 14th September, 2020. 4 After the resolution plan has been given effect to, respondent no.1 has initiated reassessment proceedings against petitioner for assessment year 2013-14 by issuing a notice under section 148 of the Act dated 27th February, 2021. Although, petitioner filed objections to the initiation of reassessment proceedings by submitting, inter alia, that the proceedings for assessment year 2013-14, being a period prior to the closing date are non-est and could not have been initiated by the Incometax Department in view of the resolution plan approved by the NCLT, respondent no.1, vide order dated 6th December ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evidence with respect to any other person or with regard to ex-promoters, exemployees of petitioner, then, the same shall be used, for the purpose of any proceedings under the Income tax Act or any law in respect of the said persons and the findings / evidences in the case of the assessee shall be used against the assessee in framing of the assessment. However, in view of the legal position, yet to be settled, the recovery of demand will not be enforced as being done in the case of petitioner." 8 Section 148 read with Section 147 of the Act only deals with a situation where any income chargeable to tax has escaped assessment for any assessment year. We are unable to fathom as to how the provisions of Section 148 of the Act can be applied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw, having been issued contrary to the provisions of the Code and the Resolution Plan. Section 31 of the Code provides that the resolution plan which is approved under the Code is binding on the Corporate Debtor, its employees, members, creditors including the Central Government, State Government and any local authority to whom a debt or a statutory due is owned. Further, section 238 of the Code provides that the Code shall have effect notwithstanding anything inconsistent therein contain in any other law for the time being in force. Therefore, the resolution plan approved under section 31 of the Code will be applicable even if the department contends that the same is inconsistent with the provisions of the Act. Hence, proceedings cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e.f. 1-4-2022 provides that if any amount payable by an assessee for which notice of demand has been issued, is reduced as a result of an order by the Adjudicating authority under the Code, the Assessing Officer shall modify the demand payable in conformity with such order. This section further makes it clear that effect of the resolution plan is required to be given to by the Assessing Officer. (d) The argument of the revenue that, proceedings under section 148 of the Act initiated for collection of evidence in respect of third parties, expromoters, etc. is not within the scope and ambit of section 147 / 148 of the Act, as reassessment proceedings under the said section can only be initiated for bringing to tax income which has escaped a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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