Penalty proceedings against dissolved company remanded to AO after NCLT approved resolution plan.

The Income Tax Appellate Tribunal (ITAT) partially allowed the appeals of a dissolved company and remanded the case to the Assessing Officer (AO) to address penalty proceedings under Section 271(1)(c) following the National Company Law Tribunal's (NCLT) approval of a resolution plan, which included a moratorium under the Insolvency and Bankruptcy Code (IBC). According to Section 14, ongoing proceedings against the corporate debtor are prohibited post-moratorium. The ITAT, referencing a Supreme Court decision, noted that once a resolution plan is approved, claims are binding on all stakeholders, including government authorities. The matter was remanded as the resolution plan was not finalized. .....

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