Case Law Details
Rishi Ganga Power Corporation Ltd Vs ACIT (Delhi High Court)
Delhi High Court held that as revenue has failed to lodge the claim with the Resolution Professional, they cannot enforce the impugned orders and notices, given the binding nature of approved Resolution Plan.
Facts- The petitioner, i.e., Rishi Ganga Power Corporation Ltd. [RGPCL] has, via the instant writ petition, assailed two sets of orders and notices. The first set concerns the order dated 21.11.2019 and the demand notice dated 22.11.2019. The order dated 21.11.2019 was passed by the revenue for failure on the part of RGPCL to respond to the notices issued u/s. 142(1) of the Act. This order was passed u/s. 272A(1)(d) of the 1961 Act. Via the said order, RGPCL has been mulcted with a penalty of Rs.10,000/-. The demand notice dated 22.11.2019 seeks to recover the said amount.
The second set comprises the impugned order and demand notice bearing the same date, i.e., 06.12.2019. The assessment order dated 06.12.2019 has been framed u/s. 143(3) of the 1961 Act and concerns Assessment Year (AY) 2017-18. Via the said assessment order, RGPCL’s income was assessed at Rs.28,93,60,000/- against a loss declared by it amounting to Rs.3,13,43,192/. The aforesaid assessed income resulted from an addition of an equivalent amount u/s. 68 of the 1961 Act vis-à-vis unexplained credits. AO, via the same assessment order, also initiated penalty proceedings against RGPCL u/s. 271AAC of the 1961 Act.
Conclusion- Held that the revenue had not lodged its claim, despite the publication of the public announcement by the Resolution Professional inviting claims from creditors, including statutory/operational creditors such as the revenue, no provision could be made [even if it may otherwise have been possible] in the approved RP. The terms contained in the approved RP are binding on all stakeholders, including those who could have filed claims but chose not to lodge them. The revenue, having failed to lodge its claim, cannot enforce the impugned orders and notices, given the binding nature of the approved RP.
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