MAHARASHTRA SEAMLESS LIMITED vs. INCOME TAX DEPARTMENT THROUGH OFFICE OF THE ASSISTANT COMMISSIONER & ORS.

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W.P.(C)/8922/2025HC DelhiDLHC01039540202516 September 2025Author: HON'BLE MR. JUSTICE V. KAMESWAR RAO,HON'BLE MR. JUSTICE VINOD KUMAR3 pages
AI SummaryWithdrawn

What did the High Court hold?

The Delhi High Court took on record the stand taken by the respondents in their counter affidavit. The respondents, the Income Tax Department, stated that in compliance with the directions of the Hon'ble Supreme Court of India in the case of Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited (Civil Appeal No. 8129 of 2019), all demand notices, assessment orders, penalty orders, and show cause notices issued against M/s USTPL may be treated as withdrawn. In view of this submission by the respondents, the learned counsel for the petitioner agreed that the prayers made in the writ petition were answered and the matter could be disposed of. Consequently, the High Court disposed of the petition as having become infructuous. No specific finding was made on the merits of the assessment or the validity of the notices, as the matter was resolved based on the revenue's submission to withdraw the proceedings.

What were the facts?

The petitioner, Maharashtra Seamless Limited, filed a writ petition before the Delhi High Court seeking to quash a Show Cause Notice dated March 1, 2021, an Assessment Order dated March 8, 2021, and a Demand Notice dated March 8, 2021, along with all other related proceedings concerning tax demands for Assessment Year 2017-2018. The petitioner also sought directions to prevent the initiation or continuation of proceedings for periods prior to the approval of a Resolution Plan on January 21, 2019. The respondents, the Income Tax Department, in their counter affidavit, stated that notices and orders were issued by the Assessing Officer for relevant assessment years after the NCLT order. Specifically, an Assessment Order dated March 29, 2022, was issued to United Seamless Tubular Private Limited (USTPL/Assessee) under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, 1961, for Assessment Year 2016-17. Crucially, the respondents stated that in compliance with the Supreme Court's directions in Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited, all demand notices, assessment orders, penalty orders, and show cause notices issued against USTPL may be treated as withdrawn.

What were the issues?

1. Whether the Show Cause Notice dated March 1, 2021, Assessment Order dated March 8, 2021, and Demand Notice dated March 8, 2021, pertaining to Assessment Year 2017-2018, and all other related proceedings, should be quashed, and whether proceedings for periods prior to January 21, 2019, should be stopped or continued, in light of the approval of a Resolution Plan. (Question of law and fact, concerning the impact of a Resolution Plan on tax liabilities). Assessee's Contention: The petitioner sought the quashing of the impugned notices and orders and a direction to cease proceedings for periods prior to the Resolution Plan approval. Revenue's Contention: The respondents, in their counter affidavit, stated that the Assessment Order dated March 29, 2022, for AY 2016-17 was issued to USTPL. However, they further submitted that in compliance with the Supreme Court's directions in Ghanshyam Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited, all demand notices, assessment orders, penalty orders, and show cause notices issued against USTPL may be treated as withdrawn.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
$~75 * IN THE HIGH COURT OF DELHI AT NEW DELHI + W.P.(C) 8922/2025, CM APPL. 38220/2025, CM APPL. 38221/2025 MAHARASHTRA SEAMLESS LIMITED .....Petitioner Through: Ms. Vanita Bhargava, Mr. Ajay Bhargava, Ms. Wamika Trehan and Mr. Varun Chopra, Advs. versus INCOME TAX DEPARTMENT THROUGH OFFICE OF THE ASSISTANT COMMISSIONER & ORS. .....Respondents Through: Mr. Indruj Singh Rai, SSC with Mr. Sanjeev Menon, Mr. Rahul Singh, JSCs and Mr. Gaurav Kumar, Adv. for Revenue CORAM: HON'BLE MR. JUSTICE V. KAMESWAR RAO HON'BLE MR. JUSTICE VINOD KUMAR

O R D E R %

16.09.

2025

1.

This petition has been filed with the following prayer:- “a. Issue an appropriate writ in the nature of mandamus, certiorari, or any other appropriate order or direction quashing the Show Cause Notice dated 01 March 2021 and, Assessment Order dated 08 March 2021 and Demand Notice dated 08 March 2021 and all other proceedings, orders and notices pertaining to tax demands pertaining to the Assessment year 2017-2018; and/or b. Issue a direction to the Respondents to not initiate / continue any proceedings and pass such orders and notices for the period(s) prior to approval of the Resolution Plan, i.e., prior to 21 January 2019; and/or”

2.

The respondents, in their counter affidavit vide paragraphs 14, 15 and 17 have stated as under :- “The humble answering respondent most respectfully submits that perusal of the records of M/s USTPL, it is observed that the This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 12:02:51

notices/ orders have been issued/ passed by the AO for the relevant AYs after the order of the Hon'ble NCLT. The undermentioned Demand Notices/ Assessment/ Penalty orders. under challenge in the present Writ Petitions, were issued to M/s USTPL: -“

15.

The Assessment Order dated 29.03.2022 was issued by Income Tax Department. Ministry of Finance to the Assessee, United Seamless Tubulaar Private Limited ("USTPL / Assessee"), under Section 147 read with Section 144 read with Section 144B of the Income Tax Act, 1961 ("IT Act"), for the Assessment Year 2016-

17.

The humble answering respondent most respectfully submits that in compliance with the directions of the Hon'ble Supreme Court of India in the case of Ghanshytim Mishra and Sons Private Limited v. Edelweiss Asset Reconstruction Company Limited (Civil Appeal No. 8129 of 2019), that the demand notices & other related notices orders, such as assessment/ penalty orders/ show cause notices related to above demands, issued against Mis USTPL may be treated as withdrawn” This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 12:02:51

3.

In view of the stand taken by the respondents in their counter affidavit, the learned counsel for the petitioner submits that the same shall answer the prayers as made by the petitioner in the writ petition and the matter be disposed of taking their stand on record.

4.

If that be so, we take on record the stand taken by the respondents in their counter affidavit and dispose of the petition as having become infructuous. V. KAMESWAR RAO, J VINOD KUMAR, J SEPTEMBER 16, 2025 cd This is a digitally signed order. The authenticity of the order can be re-verified from Delhi High Court Order Portal by scanning the QR code shown above. The Order is downloaded from the DHC Server on 27/09/2025 at 12:02:51

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