GARDEN SILK MILLS PVT. LTD.,,SURAT vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE -1(1)(2), SURAT

ITA 373/SRT/2022Status: HeardITAT Surat22 September 2023AY 2011-12Bench: SHRI PAWAN SINGH (Judicial Member), Dr. ARJUN LAL SAINI (Accountant Member)8 pages
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What did the Tribunal hold?

The Tribunal held that once a resolution plan is approved by the NCLT, all claims not included in the plan are extinguished and cannot be pursued. Therefore, the tax demands against the assessee for the relevant assessment years stood extinguished.

What were the facts?

The assessee company underwent insolvency proceedings, and its resolution plan was approved by the NCLT. The Income Tax Department was not recognized as an operational or secured creditor in this plan. The assessee argued that all tax liabilities were extinguished as they were not part of the approved resolution plan.

What were the issues?

Whether tax liabilities are extinguished if not included in an NCLT-approved resolution plan, and if the Income Tax Department can pursue such claims.

Which sections of the Income-tax Act were involved?

Section 156A

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Cases cited in this judgment(1)Show list

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IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND Dr. ARJUN LAL SAINI, ACCOUNTANT MEMBER ITA Nos. 372 to 382/Srt /2022 (Assessment Year: 2010-11 to 2017-18, 2019-20 & 2020-21) (Physical hearing) Garden Silk Mills Pvt. Ltd., D.C.I.T., 1st Floor, Tulsi Krupa Arcade, Circle-1(1)(2), Vs. Aai Mata Chowk, Surat. Parvat Patia Road, Surat, Gujarat-395010 PAN No. AAACG 8932 C Appellant/ Assessee Respondent/ Revenue

Assessee represented by Shri Nitin Gheewala, CA with Nancy Vankawala Revenue represented by Shri Ashish Pophare, CIT-DR with Shri Vinod Kumar, Sr. DR Date of hearing 21/09/2023 Date of pronouncement 22/09/2023 Order under Section 254(1) of Income Tax Act PER: BENCH:

1.

This bunch of eleven (11) appeals by the assessee are directed against the separate orders of learned National Faceless Appeal Centre, Delhi (in Short NFAC)/learned Commissioner of Income Tax (in short, the ld. CIT(A) all dated 14/10/2022 for the Assessment Year (AY) 2010-11 to 2017-18, 2019-20 and 2020-21. In all these appeals, the assessee has raised similar grounds of appeal. Facts in all these years are identical, therefore, with the consent of parties all

The order continues below.

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