Case Law Details
PCIT Vs Assam Company India Ltd. (NCLAT Delhi)
NCLAT Delhi held that the dues of income tax department are ‘Government dues’ and they are secured creditors.
Facts- A Financial Creditor i.e. Seri Infrastructure Pvt. Ltd. had approached NCLT by filing an application u/s. 7 of the Insolvency and Bankruptcy Code,2016 seeking initiation of corporate insolvency resolution process (“CIRP”) of the Assam Company India Ltd. (“Corporate Debtor”).
The said application was registered and numbered as CP (IB) No. 20/GB/2017 and the same was admitted vide order dated 26.10.2017 and an interim resolution professional (“IRP”) was appointed. On coming to know about the insolvency proceedings, the Appellants placed before the Resolution Professional (“RP”) demand of income tax for the Assessment Year 2013-14 for Rs. 6,69,84,657 and Assessment Year 2014-15 for Rs. 9,50,41,296 totaling to Rs. 16,20,25,953/- which were outstanding before the date of admitting the said application. The claim was filed in the form of ‘Form B’ dated 14.11.2017.
The Resolution Professional informed the Appellants that the claim of the Department would not be admitted since the Respondent has preferred an appeal with the Commissioner of Income Tax (Appeals) for both the aforementioned Assessment Years. The Resolution Professional, however, communicated that after the final order of the CIT(A), the new promoter of the Respondent would pay the demand which is a statutory liability. In response to this, the Appellants contended that the mere filing of an appeal would not grant immunity to the Respondent from recovery of tax dues.
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