IBC Plan Prevails Over Income Tax Reassessment: Calcutta HC

Mcnally Bharat Engineering Co. Ltd Vs Union Of India & Ors (Calcutta High Court) The Calcutta High Court ruled in favor of McNally Bharat Engineering Co. Ltd., quashing reassessment proceedings initiated by the Income Tax Department. The court held that the resolution plan approved by the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC) overrides the Income Tax Act. The petitioner, undergoing Corporate Insolvency Resolution Process (CIRP), had its resolution plan approved, which explicitly prohibited any proceedings or inquiries for the period prior to th...