UNIVERSAL INDUSTRIAL EQUIPMENT AND TECHNICAL SERVICES PVT. LTD. ,NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE -2 , NAGPUR

ITA 350/NAG/2023Status: DisposedITAT Nagpur17 February 2026AY 2015-16Bench: SHRI PAWAN SINGH (Judicial Member), SHRI KHETTRA MOHAN ROY (Accountant Member)1 pages
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What did the Tribunal hold?

The Tribunal held that once a resolution plan is approved, all claims not part of the plan are extinguished. Since the Income Tax Department did not file a claim, the tax liabilities for the assessment years in question stood abated.

What were the facts?

The assessee company underwent Corporate Insolvency Resolution Process (CIRP). The Income Tax Department did not file any claim with the resolution professional. The resolution plan was approved by the NCLT, and subsequently, the assessee filed appeals against tax demands.

What were the issues?

Whether tax liabilities not included in an approved resolution plan are extinguished. Whether the Insolvency and Bankruptcy Code overrides the Income Tax Act in such cases.

Which sections of the Income-tax Act were involved?

Section 156A

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IN THE INCOME TAX APPELLATE TRIBUNAL “NAGPUR” BENCH, NAGPUR BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER & SHRI KHETTRA MOHAN ROY, ACCOUNTANT MEMBER (Physical hearing) Universal Industrial Equipment And DCIT, Circle – 2, Nagpur Maharashtra – 440001. Maharashtra – 440001. [PAN: AAACU3536C] Appellant / Assessee Respondent / Revenue Assessee by Miss. Veena Agrawal, CA Revenue by Shri Surjit Kumar Saha, Sr. DR Date of hearing 17.02.2026 Date of pronouncement 17.02.2026 Order under section 254(1) of Income Tax Act

PER PAWAN SINGH, JUDICIAL MEMBER:

1.

These two appeals by assessee are directed against the separate orders of ld. CIT(A)/National Faceless Appeal Centre, Delhi, both dated 27.04.2023 for Assessment Year (A.Y.) 2014–15 & 2015–16. In both the appeals the assessee has raised similar grounds of appeal, raising the plea that the assessee has gone under Corporate Insolvency Resolution Process (CIRP) and the claim of Income Tax department was not part of resolution plan approved

The order continues below.

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