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Case Law Details

Case Name : Indo Enviro Integrated Solutions Limited Vs ACIT (Delhi High Court)
Appeal Number : W.P.(C) 8899/2022
Date of Judgement/Order : 03/06/2022
Related Assessment Year :
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Indo Enviro Integrated Solutions Limited Vs ACIT (Delhi High Court)

Introduction: Delhi High Court is now the battleground for Indo Enviro Integrated Solutions Limited as it challenges the order, notices of demand, and penalty issued by the Assistant Commissioner of Income Tax (ACIT) on May 14, 2022. The crux of the challenge lies in the alleged contravention of the National Company Law Tribunal (NCLT) order dated May 2, 2022. The petitioner contests the proceedings initiated by respondent No.2, claiming they are without jurisdiction and violate the National Company Law Appellate Tribunal (NCLAT) order of October 15, 2018.

Detailed Analysis: The petitioner contends that the impugned order and consequential notices, demanding a staggering Rs. 48 crores in income tax, violate the NCLT order in CA No.1163 of 2020 in CP No.3638/MB/2018. The NCLT order, dated February 2, 2021, extinguished all claims and liabilities of creditors, including those of the Central Government, local tax, or regulatory authorities, existing at or relating to the period before October 15, 2018. The challenge revolves around the alleged non-compliance with the resolution process approved by the NCLT.

The learned counsel for the petitioner argues that the entire tax demand is in contradiction to the NCLT order, and the notices issued by respondent No.2 lack jurisdiction, violating the NCLAT order of October 15, 2018. The petitioner has sought legal intervention from the Delhi High Court to rectify the perceived irregularities.

Conclusion: The legal tussle between Indo Enviro Integrated Solutions Limited and the Assistant Commissioner of Income Tax takes center stage in the Delhi High Court. The petitioner vehemently argues against the tax demand, asserting a breach of NCLT orders. The court has issued notices, and the proceedings, along with the consequential notices of demand and penalty, are currently stayed until further orders. The stage is set for a comprehensive legal examination, and the next hearing is scheduled for September 27, 2022.

Delve into the intricate legal dynamics of the case as Indo Enviro Integrated Solutions Limited challenges the tax demand order in Delhi High Court. Uncover the nuances of jurisdictional disputes, NCLT orders, and the petitioner’s claims against notices issued by the income tax authorities. The court’s stay on the impugned order adds suspense to the unfolding legal drama.

Present writ petition has been filed challenging the order dated 14th May, 2022 and consequential notices of demand and penalty dated 14th May, 2022, all issued by respondent No.1 on the ground that they are in contravention of National Company law Tribunal (hereinafter referred to as ‘NCLT’) order dated 2nd May, 2022. Petitioner also seeks to challenge the proceedings initiated by respondent No.2 vide letter dated 22nd September, 2019 and pursued through subsequent notices dated 22nd December, 2020, 29th May, 2021, 11th June, 2021 and 23rd August, 2021 on the ground that the said notices are wholly without jurisdiction and in gross violation of the order dated 15th October, 2018, passed by National Company Law Appellate Tribunal (for short ‘NCLAT’).

Learned counsel for the petitioner states that the impugned order and the consequential notices of demand and penalty raising a demand of income tax amounting to Rs. 48 crores are in complete contravention of the order passed by the NCLT in CA No.1163 of 2020 in CP No.3638/MB/2018 dated 2nd February, 2021 vide which pursuant to the approval of the resolution process, all claims and liabilities of creditors (including the Central Government, local tax or regulatory authorities) whether existing at or relating to a period prior to 15th October, 2018 stood extinguished.

Issue notice.

Mr. Shailendra Singh and Ms. Suman Chauhan, learned counsel accept notice on behalf of respondents/Revenue and Union of India. They pray for and are granted six weeks to file their counter affidavits. Rejoinder affidavits, if any, be filed before the next date of hearing. Further, the petitioner is directed to place on record affidavits dated 24th January, 2019 and 9th January, 2020 allegedly filed by the Union of India before NCLT within a week’s time.

Till further orders, the order dated 14th May, 2022 as well as consequential notices of demand and penalty dated 14th May, 2022 issued by the respondent No. 1 are stayed.

List on 27th September, 2022.

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