Ultra Tech Cement Limited & Anr. Vs Union of India & Ors. (Calcutta High Court)
Summary: The Calcutta High Court disposed of WPA No. 2036 of 2020 filed by Ultra Tech Cement Limited & Anr., a successful resolution applicant in respect of Binani Cement Ltd., against adjustments and proceedings relating to tax demands for the pre-transfer period. The Court noted that the resolution plan was approved by NCLAT on 14.11.2018 and the effective date of takeover was 20.11.2018. Relying on the principles stated in Ghanashyam Mishra, Essar Steel and the other authorities cited before it, the Court held that the Income Tax Authorities could not adjust refunds against claims that stood frozen and were not part of the approved resolution plan, nor initiate fresh proceedings concerning the pre-transfer period.
The Court quashed the impugned notices, orders and consequential proceedings, directed refund of amounts wrongly adjusted with interest, permitted carry-forward of unabsorbed depreciation and accumulated losses in accordance with law, and directed acceptance of returns for the pre-transfer period without reassessment or other proceedings. The Department was also directed to refund amounts already adjusted within six weeks with interest, while the Court observed that authorities should act more circumspectly after approval of a resolution plan.
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