Diamond Power Infrastructure Ltd. Vs ACIT (Gujarat High Court)
Gujarat High Court held that notice issued under section 148 of the Income Tax Act after approval of resolution plan by the adjudicating authority under Sub-section (1) of Section 31 of the IBC is liable to be quashed and set aside.
Facts- A search and seizure operation was carried out u/s. 132 of the Income Tax Act, 1961 on 10.04.2018 in case of the petitioner. After the search operation, an Application u/s. 7 of the Insolvency and Bankruptcy Code, 2016 was filed by the Bank of India.
NCLT passed an order on 24.08.2018 admitting the Corporate Debtor in Corporate Insolvency Resolution Process and one Mr.R.D.Choudhary was appointed as an Interim Resolution Professional.
The respondent-Income Tax Department preferred an Application seeking permission to proceed further with the assessment proceedings for Assessment Years 2013-14 to 2018-19 before the NCLT. The NCLT by order dated 27.05.2020 granted such permission.
The NCLT by order dated 20th June, 2022 approved the Resolution Plan on the basis of the approval granted by the Committee of Creditors (CoC) and on the basis of the Information Memorandum which provided the claims of the creditors of the petitioner.
Thereafter, the respondent-Authority passed an Assessment Order dated 29th June, 2022 for Assessment Years 2013-14 to 2019-20 raising the demand in case of the petitioner. In view of the order passed by the NCLT, the respondent-Authority also preferred an Appeal before the National Company Law Appellate Tribunal with a prayer for inclusion of the claims of the respondent-Authority.
