H L Buildwell Private Limited Vs DCIT (Punjab and Haryana High Court)
The Punjab and Haryana High Court allowed seven writ petitions involving similar facts concerning enforceability of income tax demands after approval of a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC). The lead case involved H L Buildwell Pvt. Ltd., where a search and seizure operation under Section 132 of the Income Tax Act was conducted on 26.02.2020. Pursuant to the search, an assessment order dated 12.04.2022 was passed for AY 2014-15 adding Rs.3.63 crore to the assessee’s income and raising a demand of Rs.2.39 crore through notice under Section 156.
Meanwhile, on 15.02.2022, the National Company Law Tribunal (NCLT) admitted insolvency proceedings against the petitioner and declared moratorium under Section 14 of the IBC. A Resolution Professional was appointed after suspension of the existing management. The Resolution Professional challenged the assessment order before the Commissioner of Income Tax (Appeals), but the appeal was dismissed on 28.10.2025.
During pendency of the appeal, the Income Tax Department lodged its claim before the Resolution Professional based on the assessment order. However, the claim was rejected on 29.06.2022 and the department did not challenge that rejection. Subsequently, a resolution plan submitted by the successful resolution applicant was approved by the NCLT on 17.08.2023. Since the Income Tax Department’s claim had already been rejected, it did not form part of the approved resolution plan.
