Central Board of Direct Taxes & Ors. Vs Technovaa Plastic Industries Private Limited (Supreme Court of India)
The matter arose from proceedings involving condonation of delay in filing income tax returns and the impact of a resolution plan approved under the Insolvency and Bankruptcy Code 2016 (IBC). The petitioner company was subjected to Corporate Insolvency Resolution Process (CIRP) initiated by an operational creditor before the National Company Law Tribunal (NCLT), Ahmedabad. By order dated 12.11.2018, the NCLT admitted the application and imposed a moratorium, resulting in suspension of the existing management. Subsequently, the Committee of Creditors approved a resolution plan on 19.09.2019, which was later sanctioned by the NCLT on 04.09.2020, making it binding on all stakeholders.
After taking control, the new management found that statutory audit had not been conducted and income tax returns had not been filed by the resolution professional. The new management undertook audit and filed returns, including a belated return for Assessment Year (AY) 2019–20 under Section 139(4) on 30.11.2020, and another return for AY 2021–22 on 15.03.2022, claiming set-off of brought forward losses. However, during scrutiny, the tax authorities disallowed the carry forward of losses on the ground that the return for AY 2019–20 had been filed beyond the due date.
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