ACIT Vs Indo Enviro Integrated Solutions Private Limited (ITAT Delhi)
Delhi ITAT: Tax Demands Relating to Pre-NCLT Cut-off Period Stand Fully Extinguished and Are Irrecoverable
Summary: The Delhi ITAT considered the Revenue’s appeal in ITA No.9121/Del/2025 and the assessee’s cross-objection in CO 60/Del/2026 for AY 2017-18, arising from the order dated 14.10.2025 of the ld. Jt. Commissioner of Income Tax (Appeals)-10, Mumbai, concerning the assessment order passed under Section 154 of the Income-tax Act, 1961 dated 14.03.2024. The assessee had originally been incorporated as IL&FS Waste Management and Urban Services Limited and subsequently underwent changes in name and ownership following the NCLT resolution process, ultimately becoming Indo Enviro Integrated Solutions Private Limited. The Tribunal noted the NCLT order dated 02.02.2021, under which 15.10.2018 was fixed as the cut-off date and claims of creditors including Central Government, State Government, statutory, local, tax and regulatory authorities pertaining to periods prior to that date, including actual or contingent liabilities, were directed to stand unconditionally and fully extinguished. Although the assessment order under Section 143(3) was passed on 30.09.2021 and the rectification order under Section 154 was passed on 14.03.2024, the Tribunal treated the liability as relating to AY 2017-18 and therefore to a period preceding the stipulated cut-off date. Relying on the Supreme Court’s decision in Ghanashyam Mishra & Sons (P.) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd., the Tribunal concluded that the demands raised pursuant to the assessment and rectification orders became irrecoverable. The Revenue’s appeal and the assessee’s cross-objection were accordingly dismissed.
