DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-3,, VADODARA vs. DIAMOND POWER INFRASTRUCTURE LIMITED, VADODARA

ITA 861/AHD/2025Status: DisposedITAT Ahmedabad29 July 2025AY 2019-20Bench: Shri Sanjay Garg (Judicial Member), Smt. Annapurna Gupta (Accountant Member)6 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal found that the Revenue had participated in and accepted the Resolution Plan before the NCLT, which approved the plan, extinguishing all outstanding liabilities. Therefore, the CIT(A) was justified in quashing the assessment orders. The Tribunal upheld the CIT(A)'s decision to dismiss the Revenue's application u/s 154.

What were the facts?

A search and seizure operation was conducted on the assessee, leading to initiation of assessment proceedings u/s 153A. The assessee company approached NCLT under IBC, and a Resolution Plan was approved, settling all operational creditors' dues including Income Tax Department's claim for Rs. 5 crores, thereby extinguishing past liabilities. Despite this, the AO passed assessment orders u/s 153A, which the CIT(A) subsequently quashed.

What were the issues?

Whether the CIT(A) was justified in quashing the assessment orders based on an NCLT-approved Resolution Plan which extinguished tax liabilities, and whether the CIT(A) correctly dismissed the Revenue's application u/s 154 for recall of its order.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 30(6),Section 143(3),Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “ A ” BENCH, AHMEDABAD

Before: Shri Sanjay Garg & Smt. Annapurna Gupta

For Appellant: Shri S.N. Soparkar, Sr.Advocate
Hearing: 28/07/2025Pronounced: 29/07/2025

Per Sanjay Garg, Judicial Member:

The present appeal has been preferred by the Revenue against the order of the Learned Commissioner of Income Tax (Appeals)-12, Ahmedabad [hereinafter referred to as ‘the CIT(A)’] dated 07/01/2025 passed for Assessment Year (AY) 2019-20. 2. There is a delay of 23 days in filing the appeal. An application for condonation of delay has been filed by the Department. Dy.CIT, CC-3 vs. Diamond Power Infrastructure Lt

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 132

All 14,598 judgments and leading authorities on Section 132 →

Recent GST High Court judgments

Search GST case law →