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Income Tax Appellate Tribunal, DELHI BENCH “B’’ : NEW DELHI
Before: SHRI MAHAVIR SINGH & SHRI KRINWANT SAHAY
PER MAHAVIR SINGH, VICE PRESIDENT :
This appeal by the assessee is arising out of the order of the Ld. Commissioner of Income Tax (Appeals)-15, New Delhi in Appeal No. 76/18-19 dated 05.08.2019. Assessment was framed by the ITO, Ward 7(1), New Delhi for the assessment year 2008-09 u/s. 147/143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) vide order dated 30.03.2016.
At the outset, Ld. Counsel for the assessee filed copy of order of NCLT, New Delhi Bench-V passed in I.A/6308/ND/2023 in CP (IB) No. 242/ND/2021 dated 13.06.2025. Ld. Counsel for the assessee stated that Resolution Plan is approved by the NCLT in its aforesaid order vide para nos. 11 to 18, which are reproduced as under:- “IMPLEMENTATION OF RESOLUTION PLAN 11. After the perusal of the Final Resolution Plan and its addendum submitted by the Successful Resolution Applicant along with the mandatory compliances filed by the Applicant herein, we are of the view that:
11.1. In respect of compliance regarding Regulation 39(4) of the CIRP Regulations, the Applicant has filed a compliance certificate in Form-H, certifying that the Resolution Plan submitted by the Successful Resolution Applicant meets the requirements as laid down in various sections of the Code and the CIRP Regulations and there are sufficient provisions in the Plan for its effective implementation as required under the Code. Further, an affidavit has been obtained from the Successful Resolution Applicant stating that he is eligible under the provisions of Section 29A of the Code, 2016. 11.2. In view of the above discussion, this Adjudicating Authority is satisfied that the Resolution Plan as filed and explained by the SRA meets the requirement of Section 30(2) of IBC. 11.3. The Resolution Applicant has provided the indicative timeline of events for implementation of the Resolution Plan at Page No. 243, which is reproduced as under:
Step Action Timeline (In working days)
Step 1 Approval for revival of the Company by eh Adjudicating T Authority Step 2 Approval of the Resolution Plan by the Adjudicating T Authority Step 3 Infusion of funds by way of equity for payment of unpaid T + within 18 CIRP Costs and payment of proposed amounts for months Operational Creditors and Financial Creditor Step 4 Payments of any unpaid CIRP costs T + within 18 months Step 5 Capital Reduction of the CD T + within 18 months Step 6 Infusion of funds by way of equity or convertible T + within 18 securities or subordinate convertible loans or any months appropriate means Step 7 Payment of upfront amount towards unpaid (CIRP Costs T + within 18 as well as the dues of operational creditors and financial months creditors. Step 8 Assignment of Admitted Financial Debt by the Financial T + within 18 Creditors to the RA months Step 9 Receipt of NOC from Financial Creditors T + within 18 months
2 | P a g e 11.4. While approving the resolution plan as mentioned above, it is clarified that the resolution applicant shall, pursuant to the resolution plan approved under section 31(1) of the Code, 2016, obtain all the necessary approvals as may be required under any law for the time being in force within the period as provided for in such law.
In the Resolution Plan, it is mentioned that the powers concerning the control of the Corporate Debtor vests with the Resolution Professional which will be then transferred to the alleged new Board of Directors once the said Resolution Plan is approved by this Adjudicating Authority. Thereafter, the Resolution Applicant shall be in control and management of affairs of the Corporate Debtor. 12.1. Further, the correct implementation of the said Resolution Plan shall be performed by the Monitoring Committee from the date the said Resolution Plan gets approved. Pursuant to the aforementioned approval, the Monitoring Committee shall comprise of Resolution Professional or any other Insolvency Professional, one designated representative of the creditors and one designated representative of the Resolution Applicant and the said Committee shall be formed within one day from the communication of the order approving the said Resolution Plan. 12.2. The Monitoring Committee shall oversee the implementation of the Resolution Plan. It shall assist to maintain Corporate Debtor as a going concern with business in good health, in trust, in furtherance of sale of the Corporate Debtor to the Resolution Applicant and no other Person or stakeholder.
The Resolution Applicant reserves the right to streamline/restructure its holding in the Corporate Debtor and/or the operations, assets, liabilities, and/or businesses of the Corporate Debtor or any of their undertakings through arrangements, reconstructions, restructurings, mergers, sale of assets or securities or any other form of reorganization, renegotiation of existing agreements or arrangements, at any date after the Plan Effective Date. It is clarified that the same shall be done in consensus with the Monitoring Committee.
Therefore, in our considered view, there is no impediment to giving approval to the instant Resolution Plan. Accordingly, we hereby approve the Resolution Plan, which shall be binding on the corporate debtor and its employees, shareholders of the corporate debtor, creditors including the Central Government, any State Government or any local authority to whom statutory dues are owed, Successful Resolution Applicant and other stakeholders involved. In view of the above, I.A. 6308/ND/2023 stands allowed. 3 | P a g e
It is declared that the moratorium order passed by this Adjudicating Authority under Section 14 of the Code shall cease to have effect from the date of pronouncement of this order.
The Resolution Professional shall forward all records relating to the Corporate Insolvency Resolution Process of the corporate debtor and the Resolution Plan to IBBI to be recorded in its database in terms of Section 31(3) (b) of the Code. The Resolution Professional is further directed to hand over all the records, premises, and properties of the corporate debtor to the Successful Resolution Applicant to ensure a smooth implementation of the resolution plan.
The approved Resolution Plan shall become effective from the date of passing of this order. The Approved Resolution Plan shall be a part of this order, subject to our observations regarding concessions, reliefs and waivers sought therein.
The Monitoring Committee is directed to file the monthly status report with regard to the implementation of the approved plan before this Adjudicating Authority. In view of the above, the I.A./6308/ND/2023 stands approved in terms of the aforesaid discussion and is accordingly disposed off.”
When this fact was confronted to both the sides, Ld. Sr. DR as well as Ld. Counsel for the assessee agreed with the aforesaid proposition that NCLT has passed the Resolution Plan on the Application filed by the Financial Creditors u/s. 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). Finally, NCLT passed the order and approved Resolution Plan vide order dated 13.06.2025. Now the assessee’s contention is that the Revenue want to enforce the demand which relates to prior period to the Resolution Plan approved and therefore, the same is extinguished by the operation of law as already decided by the Hon’ble Supreme Court of India in the case of Ghanshyam Mishra & Sons Private Limited vs. Edelweiss Asset Reconstruction Company Limited reported in (2021) 9 SCC 657 wherein, it has been held that all the claims, including statutory dues, predating the resolution plan’s approval, stand extinguished. Thus, taking into consideration this particular aspect of the matter, the statutory dues, including tax liabilities, pertaining to the period before resolution plan approved by the NCLT cannot survive. Hence, the 4 | P a g e appeal of the assessee has become infructuous and need not be adjudicated. Accordingly, the appeal of the assessee is dismissed as infructuous.
In the result, the Assessee’s appeal is dismissed. Order pronounced in the Open Court on 16.09.2025.