Case Law Details
Sirpur Paper Mills Ltd. Vs DCIT (ITAT Hyderabad)
In Ghanashyam Mishra And Sons vs Edelweiss Asset Reconstruction (2021) 126 taxmann.com 132 (SC), it was held that, (i) That once a resolution plan is duly approved by the Adjudicating Authority under sub section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the Adjudicating Authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan; (ii) 2019 amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which I&B Code has come into effect; and (iii) Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the Adjudicating Authority grants its approval under Section 31 could be continued.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
The above two appeals filed by the assessee are directed against the separate orders dated 18.01.2016 of the Learned Commissioner of Income tax (Appeals)-9, Hyderabad relating to the AY 2008-09 & 1979-80 respectively. For the sake of convenience both these appeals were heard together and are being disposed-of by this common order.
2. At the outset, both the counsel submitted that the assessee underwent the corporate insolvency resolution proceedings and such proceedings came to an end by order dated 19/7/2018 approving the resolution plan to be found at page numbers 1 to 40 of the paperbook. On a perusual of the resolution plan we find that the relevant portion of the plan is at paragraph No. 7.5 (c) at page No. 21 of the plan. For the sake of completeness and ready reference we deem it just and necessary to refer the relevant portion hereunder,-
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