TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether tax demands raised against the corporate debtor for periods prior to the approval and transfer date under the resolution plan survived after approval of the resolution plan, and whether the amounts deposited under protest and by way of mandatory pre-deposit were refundable to the successful resolution applicant.
Analysis: The resolution plan approved under Section 31 of the Insolvency and Bankruptcy Code, 2016 is binding on all stakeholders, including statutory creditors, and claims not forming part of the approved plan stand extinguished on approval of the plan. Once the corporate debtor was taken over under the approved resolution plan, the outstanding tax liabilities for the pre-transfer period could not be pursued further by the Commercial Taxes Department. The demands founded on those liabilities therefore became incapable of enforcement. The amounts paid by the corporate debtor as statutory pre-deposits and under protest were made only in connection with the now-extinguished proceedings and, in the changed legal situation created by the approved resolution plan, had to follow the same consequence as the underlying demands.
Conclusion: The pre-resolution tax demands were not enforceable and the pre-deposit amounts were refundable to the successful resolution applicant with applicable interest.
Ratio Decidendi: Once a resolution plan approved under Section 31 of the Insolvency and Bankruptcy Code, 2016 extinguishes claims not included in the plan, pre-resolution statutory tax demands cannot be enforced and amounts deposited in those proceedings as pre-deposit or under protest become refundable.
TaxTMI 
