JASRATI EDUCATION SOLUTIONS LIMITED,GURGAON vs. ASSISTANT JOINT DEPUTY ASSISTANT COMMISSIONER OF INCOME TAX , DELHI

ITA 1147/DEL/2024Status: DisposedITAT Delhi21 March 2025AY 2013-14Bench: SHRI M. BALAGANESH (Accountant Member), SHRI ANUBHAV SHARMA (Judicial Member)21 pages
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What did the Tribunal hold?

The Tribunal held that the approval of the resolution plan under the IBC extinguishes all prior tax liabilities, as confirmed by Supreme Court and High Court judgments. The assessment orders passed after the resolution plan's approval were therefore invalid.

What were the facts?

The assessee company, formerly known as Educomp Infrastructure & Schools Management Ltd., underwent insolvency resolution proceedings. A resolution plan was approved by the NCLT, which the assessee contended extinguished all prior tax liabilities. The Income Tax Department initiated reassessment proceedings and completed assessments after the resolution plan's approval.

What were the issues?

Whether tax liabilities for periods prior to the approval of a resolution plan under the IBC are extinguished, and if assessment orders passed after such approval are valid.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 143(3),Section 148,Section 156A

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Cases cited in this judgment(2)Show list

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Income Tax Appellate Tribunal, DELHI BENCHES : C : NEW DELHI

Before: SHRI M. BALAGANESH & SHRI ANUBHAV SHARMA

For Appellant: Shri Gaurav Jain, Advocate &, Shri Rahul Prabhakar, Advocate
For Respondent: Shri Dayainder Singh Sidhu, CIT-DR
Hearing: 13.03.2025

PER ANUBHAV SHARMA, JM: These appeals are preferred by the assessee against the orders dated 05.02.2024 of the Commissioner of Income-tax (Appeals), NFAC, (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘FAA’) in Appeals No.NFAC/2012-13/10064246, NFAC/2015-16/10055104 and NFAC/2017-

ITAs No.1147, 1149 & 1148/Del/2024 Jasrati Education Solutions Ltd. 18/10114649, arising out of the appeals before it against the orders dated 27.09.2021, 27.09.2021and 30.04.2021, passed u/s 147 r.w.s. 144B, u/s 147.r.w.s. 144B and u/s 143(3) r.w.s. 144B of the Income Tax Act, 1961 (

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