RAJ RAYON INDUSTRIES LTD,MUMBAI vs. PCIT, MUMBAI

ITA 830/MUM/2022Status: DisposedITAT Mumbai02 September 2022AY 2017-1822 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the NCLT's approval of the resolution plan extinguished all prior liabilities, including those of government/statutory authorities. Therefore, the PCIT's notice under Section 263 was non-est and quashed.

What were the facts?

The assessee company underwent insolvency proceedings under the IBC, and its resolution plan was approved by the NCLT. Subsequently, the PCIT issued a notice under Section 263 of the Income Tax Act to revise an assessment order for a prior year.

What were the issues?

Whether a revision notice under Section 263 can be issued after the approval of a resolution plan under the IBC, which extinguishes all prior claims against the corporate debtor.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 148,Section 147

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: SHRI ABY T. VARKEY, JM & SHRI GAGAN GOYAL, AM

For Appellant: Shri Satish Mody
Hearing: 25/07/2022Pronounced: 02/09/2022

PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Ld. Principal Commissioner of Income Tax-03 [hereinafter referred to as the “PCIT”], Mumbai dated 03.03.2022 for assessment year 2017-18 passed under section 263 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”).

2.

At the outset, it was brought to our notice that the assessee company ie. Raj Rayon Industries Ltd has gone through the proceedings under the Insolvency and Bankruptcy Code

The order continues below.

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