Technovaa Plastic Industries Private Limited Vs Central Board Of Direct Taxes & Ors. (Gujarat High Court)
The Gujarat High Court considered a petition challenging an order passed by the Central Board of Direct Taxes (CBDT) rejecting an application for condonation of delay in filing income tax returns for Assessment Years 2018–19 and 2019–20 under Section 119(2)(b) of the Income Tax Act, 1961.
Read SC Judgment in this case: SC Dismisses Appeal Due to Delay: IBC Resolution Plan Prevails Over Tax Filing Delay
The petitioner company had undergone Corporate Insolvency Resolution Process (CIRP) initiated under the Insolvency and Bankruptcy Code, 2016. During this process, the National Company Law Tribunal (NCLT) admitted the insolvency application and imposed a moratorium, resulting in the suspension of the existing management’s powers. Subsequently, a resolution plan was approved by the Committee of Creditors and later by the NCLT, making it binding on all stakeholders.
After taking control under the approved resolution plan, the new management discovered that statutory audits had not been conducted and income tax returns had not been filed by the resolution professional. The new management then carried out the audit and filed the returns, though with delay. The return for Assessment Year 2019–20 was filed belatedly, and this delay resulted in disallowance of carry forward of business losses in subsequent assessment proceedings.
