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December 2024

Where assessee-company underwent a CIRP under IBC, 2016, the provisions of IBC, 2016 overrides the provisions of the other laws for the time being enforced and once a resolution plan is approved by the Adjudicating authority, Income-tax Department is also bound by terms of the resolution plan so approved.

By Jagdish T Punjabi, Chartered Accountant
Devendra Jain & Aditya Bhatt, Advocates
Reading Time 4 mins

61 [2024] 113 ITR(T) 243 (Chandigarh - Trib.)

SEL Manufacturing Co. Ltd. Vs. DCIT

ITA NO.: 362 (CHD.) OF 2023 A.Y.: 2011-12

DATED: 27th May, 2024

Where assessee-company underwent a CIRP under IBC, 2016, the provisions of IBC, 2016 overrides the provisions of the other laws for the time being enforced and once a resolution plan is approved by the Adjudicating authority, Income-tax Department is also bound by terms of the resolution plan so approved.

FACTS

The assessee company had undergone a Corporate Insolvency Resolution Process ("CIRP") in the terms and provisions of the Insolvency and Bankruptcy Code,2016 ("IBC") under the aegis of the Adjudicating Authority of the National Company Law Tribunal ("NCLT"). A petition for CIRP u/s 7 of the IBC was filed by the State Bank of India before NCLT vide Company Petition No. (IB)-114/Chd/Pb/2017. The NCLT admitted the petition vide order dated 1st April, 2018 and vide order dated 10th February, 2021, approved the resolution plan.

The AO initiated reassessment proceedings u/s 147 on the assessee on

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