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TMI Blog2024 (12) TMI 379X X X X Extracts X X X X X X X X Extracts X X X X ..... i S.N. Soparkar, Sr. Adv. And Shri Parin Shah, A.R. For the Revenue : Dr. Darsi Suman Ratnam, CIT-DR ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER :- This appeal is filed by the Assessee as against the revision order dated 30.03.2023 passed by the Principal Commissioner of Income Tax (Appeals)-1, Ahmedabad arising out of the assessment order passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year 2018-19. 2. Brief facts of the case is that the assessee is a Company engaged in the business of sale of Computer Hardwares service provides of Bar Code Stickers, Equipments and Printers. For the Asst. Year 2018-19, assessee filed its Return of Income on 30-10-2018 claiming a loss of Rs. 33,88,77,148. The return was processed u/s. 143(1) and then taken for scrutiny assessment. When notice u/s. 142(1) dated 29-03-2019 and others were issued, the assessee failed to response to the notices but ultimately on 01-02-2021 a letter was received from Insolvency Resolution Professional (IRP). Shri Vikash Gautamohand Jain that National Company Law Tribunal (hereinafter referred as NCLT) vide its order dated 29-05- 2019 passed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on ble Madras High Court judgment in the case of Dishnet Wireless Limited Vs. ACIT in (W.P. No. 34668 of 2018) held that Corporate Insolvency Resolution Plan sanctioned and approved cannot impinge on the rights of the Income Tax Department to pass any fresh order, thereby set-aside the assessment order with a direction to the Assessing Officer to make proper enquiry of the claim of total expenses and pass fresh order and the A.O. should satisfy that decision of NCLT is not barring the A.O. to take further action. 5. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. Ld. Pr. CIT Ahmedabad-1 erred in law and on facts revising an assessment order which is neither erroneous nor prejudicial to the interest of revenue. 2. Ld. Pr. CIT erred in law and on facts holding order erroneous and prejudicial to the interest of revenue on the alleged ground that expenses of Rs. 44,40,36, 735/- out of total expenses claimed of Rs. 59, 20, 48, 980/- was not disallowed by AO in absence of any details with supportive evidence submitted by the appellant. 3. Ld. Pr. CIT erred in law and on facts in revising the order on the alleged ground that AO m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not form a part of the approved resolution plan shall stand extinguished. Clarifying further it has been held that once a resolution plan is approved by the adjudicating authority, all such claims/dues owed to the State/Central Government or any local authority including the tax authorities who were not part of the resolution plan shall stand extinguished. 7. Further as per the Resolution Plan approved by NCLT relating to direct taxes is as follows: 9. All dues under the provisions of Income Tax Act, 1961( IT Act ), including taxes, duty, penalties, interest, fines, cesses, unpaid TDS/TCS, whether admitted or not, due or contingent, whether part of above claim of Income-tax authorities or not, whether part of Tax due diligence finding or not, asserted or unasserted, crystallized or not crystallized, known or unknown, secured or unsecured, disputed or undisputed, present or future, in relation to any period prior to the Effective Date pursuant to this Resolution Plan, shall stand extinguished by virtue of the order of the NCLT approving this Resolution Plan and the Corporate Debtor and Resolution Applicant shall not be liable to pay any amount against such demand. All assessments/a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings, the Insolvency Resolution Professional vide its letter dated 01-02-2021 informed the assessing officer about the order dated 29-05-2019 passed by NCLT for commencement of Corporate Insolvency Resolution Process. However the assessing officer has not made any claim on the part of the Income Tax Department before the NCLT. However, State Government VAT Department and GST Department made the respective claim before NCLT. Thus NCLT vide its order dated 20- 12-2022 passed the following order: VIII. As regards to various reliefs and concessions which are being sought, we hereby grant the following reliefs and concessions only as against reliefs and concessions claimed by the resolution applicant: a) After the payment of the dues to the creditors, as per the resolution plan, all the liabilities of the said stakeholders prior to CIRP against the corporate debtor shall stand permanently extinguished and other claims including Government/Statutory Authority, whether lodged during CIRP or not, shall stand extinguished after the approval of the resolution plan. We further hold that contingent/unconfirmed dues shall also stand extinguished: b) From the date of this order, all claims aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sset Reconstruction Company Limited Ors reported in (2021) 9 SCC 657. 6. On the other hand, opposing the petition, learned Senior Standing counsel Mr.Karan Sanghani submitted that the notice issued under Section 263 of the Act was issued by the respondent for revising the demand for the Assessement Year 2017-18. It was submitted that in view of clear statutory provision, the powers of the respondent cannot be curtailed when procedure in accordance with law has been followed. He further submitted that the decision relied upon by the petitioner in case of Ghanashyam Mishra (Supra) is with regard to extinguishment of the claim after approval of resolution plan by NCLT as in the present case, the proceedings under Section 263 of the Act has been initiated and this being not the recovery proceedings, the decision would not be applicable. 7. Considering the submissions made on behalf of both the sides and upon perusal of the record, it is noticed that pursuant to insolvency proceedings initiated under the Code, a resolution plan dated 14.10.2021 was approved by the Tribunal under Section 30(6) of the Code. It is also on record that the claim which was lodged by the Deputy Commissioner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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