Generate professional replies to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Step 1 – Issue Identification & Review
The AI analyses your query, notice, order, or uploaded documents and identifies the key issues involved.
• Review the issues identified by the AI • Add, edit, remove, or refine issues as required
Step 2 – Draft Generation
Once you approve the issues, the AI performs issue-wise legal research and prepares a structured draft response.
• Relevant statutory provisions • Judicial precedents and Supreme Court, High Court and other citations • Issue-wise legal analysis • Practical arguments and supporting content • Professionally structured draft ready for further review.
Insolvency Code Prevails Over Tax Laws, Appeals Withdrawn Due to Section 238 The judgment emphasized the overriding effect of section 238 of the Insolvency and Bankruptcy Code, 2016 on statutes like the Income-tax Act. It was held ...
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Insolvency Code Prevails Over Tax Laws, Appeals Withdrawn Due to Section 238
The judgment emphasized the overriding effect of section 238 of the Insolvency and Bankruptcy Code, 2016 on statutes like the Income-tax Act. It was held that the Code prevails over inconsistent enactments, including tax laws. Consequently, the appeals were withdrawn by the assessee as section 238 rendered them infructuous. Additionally, the National Company Law Tribunal appointed an Insolvency Resolution Professional, leading to the dismissal of appeals against the orders of the ld. CIT (A) for the respective assessment years.
Issues involved: The issues involved in the judgment are the overriding effect of section 238 of the Insolvency and Bankruptcy Code, 2016 on other statutes, specifically the Income-tax Act, and the appointment of an Insolvency Resolution Professional by the National Company Law Tribunal.
Overriding effect of section 238 of the Insolvency and Bankruptcy Code: The judgment highlighted that section 238 of the Code prevails over all other Central and State statutes, including the Income-tax Act. This was supported by a reference to a case where the Hon'ble Supreme Court held that the Code will override anything inconsistent in any other enactment, including the Income-tax Act. It was emphasized that all claims, including those of the Income-tax Department, shall be entertained by the Official Liquidator under the Code. Consequently, the appeals were withdrawn by the assessee as section 238 of the Code had an overriding effect on the Income-tax Act, rendering the appeals infructuous.
Appointment of Insolvency Resolution Professional: The judgment mentioned that the National Company Law Tribunal had appointed Shri Prabhakar Kumar as the Insolvency Resolution Professional under the provisions of the Insolvency and Bankruptcy Code, 2016. The assessee's counsel informed that due to this appointment, they were not pressing the appeals filed against the orders of the ld. CIT (A) for the respective assessment years. As a result, the appeals were dismissed as withdrawn by the assessee, considering the appointment of the Insolvency Resolution Professional.
In conclusion, the judgment focused on the overriding effect of section 238 of the Insolvency and Bankruptcy Code, 2016 on other statutes, particularly the Income-tax Act, and the impact of the appointment of an Insolvency Resolution Professional by the National Company Law Tribunal on the appeals filed by the assessee.
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