Ireo Fiveriver Pvt. Ltd. Vs Income Tax Department & Anr. (Delhi High Court)
The Delhi High Court recently delivered a judgment in the case of Ireo Fiveriver Pvt. Ltd. vs Income Tax Department & Anr., pertaining to Section 148A(d) of the Income Tax Act, 1961, for the Assessment Year 2017-18.
The judgment revolves around the reassessment order dated July 30, 2022, issued by the Income Tax Department. The petitioner, Ireo Fiveriver Pvt. Ltd., challenged this order on the grounds that it pertained to a period before the approval of the Resolution Plan by the National Company Law Tribunal (NCLT) on August 6, 2021.
The court cited the Supreme Court’s rulings in Ghanashyam Mishra & Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. and Essar Steel India Ltd. Committee of Creditors v. Satish Kumar Gupta, emphasizing that once a resolution plan is approved by the Committee of Creditors and the NCLT, it becomes binding on all stakeholders, including government authorities like the Income Tax Department. The court held that the successful resolution applicant cannot be burdened with liabilities beyond those specified in the approved Resolution Plan.
Based on these principles, the court set aside the impugned reassessment order under Section 148A(d) of the Income Tax Act, 1961.
