2025 (11) TMI 659 - SCH - Income Tax

Finality of resolution plan under Section 62 IBC bars s.148 reassessment notice against company in insolvency, quashed

Assistant Commissioner Of Income Tax & Ors. Versus Diamond Power Infrastructure Ltd.

The SC dismissed the Special Leave Petition, upholding the HC's finding that the NCLT's approval of the resolution plan merged into the NCLAT's order and ... Reassessment proceedings against company insolvent - Affect of approved Resolution Plan by the NCLT - HC held [2025 (1) TMI 705 - GUJARAT HIGH COURT] order passed by the NCLT approving the Resolution Plan already has merged into the order passed by the NCLAT while dismissing the Appeal preferred by the respondent-Authority which has achieved finality in view of the provisions of Section 62 of the IBC. The impugned notice issued u/s 148 of the Act is not tenable in the eyes of law and is accordingly, quashed and set aside. HELD THAT:- Heard the learned counsel appearing for the petitioners. We are not inclined to interfere with the impugned judgment and order passed by the High Court. The Special Leave Petition is dismissed and the accompanying interlocutory application(s), if any, stands disposed of. 'Delay condoned.' The Court heard counsel for the petitioners and, on review, declined to disturb the 'impugned judgment and order' of the High Court. Emphasizing appellate restraint, the Court stated it was 'not inclined to interfere' and therefore dismissed the 'Special Leave Petition' and disposed of the accompanying 'interlocutory application(s), if any.' The decision is procedural and decisive: the High Court's determination stands, leaving no substantive modification or remand. The ruling reflects the exercise of discretionary jurisdiction to refuse further interference where the appellate court finds no sufficient ground to upset the lower court's order.