Reassessment Notice U/s 148 Post Company’s IBC Resolution Plan legally untenable

Alok Industries Ltd. Vs ACIT (Bombay High Court)

Bombay High Court has ruled in favor of Alok Industries Ltd., quashing reassessment proceedings initiated by the Income Tax Department for the assessment year 2013-14. The court held that the reassessment notice issued under Section 148 of the Income-tax Act, 1961, after the approval of the company’s resolution plan under the Insolvency and Bankruptcy Code (IBC), was legally untenable. The judgment follows the precedent set by the Supreme Court in Ghanshyam Mishra & Sons Ltd. v. Edelweiss Asset Reconstruction Co. Ltd.

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