Amw Auto Component Limited Vs PCIT Rajkot (Gujarat High Court)
Gujarat High Court held that initiation of revisionary proceeding under section 263 of the Income Tax Act post complete extinguishment of all tax liabilities of Corporate Debtor upon approval of resolution plan is not tenable in law. Thus, notice u/s. 263 quashed.
Facts- The Petitioner is a registered company, inter alia, engaged in the business of manufacturing components for general engineering and automotive industries. The case of the assessee was selected for scrutiny and the assessment was completed u/s. 143(3) r.w.s.144B of the Act on 23.09.2022.
The Petitioner was subjected to the insolvency proceedings under the Insolvency and Bankruptcy Code, 2016, wherein, a Corporate Insolvency Resolution Process (“CIRP”) was initiated by the Indian Overseas Bank u/s. 7 of the IBC Code, which was admitted by the Adjudicating Authority vide order dated 01.09.2020. Further, under the CIRP, the Resolution Plan of Steel Wheels Limited for the revival of the Petitioner was approved by the Hon’ble Tribunal vide order dated 12.10.2023 u/s. 30(6)of the Code.
The Respondent has issued the impugned notice dated 13.01.2025, u/s. 263 of the Act, seeking to revise the assessment order dated 26.01.2025 for the Assessment Year 2020-21. Challenging the legality of the impugned notice dated 13.01.2025, the Petitioner has filed this Petition.
