Insolvency Resolution Plan Binds All Parties, Discharges Prior Tax Claims

PCIT Vs Patanjali Foods Ltd. (Bombay High Court) Bombay High Court, in a batch of petitions including PCIT vs. Patanjali Foods Ltd., quashed reassessment notices issued under Section 148 of the Income Tax Act, 1961. The court’s decision aligns with its previous ruling in Alok Industries Limited v. Assistant Commissioner of Income Tax, which addressed similar issues related to reassessment proceedings initiated after the approval of a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC). The court reiterated that once a resolution plan is finalized and implemented, it bind...