Clean Slate Policy: Delhi HC Quashes Income Tax Reassessment Post-IBC Plan 

Surya Manufacturing Private Limited Vs ACIT (Delhi High Court) Delhi High Court has intervened to quash a reassessment order and notice issued by the Income Tax Department against Surya Manufacturing Private Limited for the assessment year 2017-18. The court’s decision reinforces the “Clean Slate Theory” in the context of the Insolvency and Bankruptcy Code (IBC), holding that once a resolution plan is approved, pre-existing liabilities not included in the plan are extinguished. Surya Manufacturing Private Limited had approached the High Court challenging an order dated April ...