2026 (2) TMI 375 - SCH - Income Tax

Binding effect of approved resolution plan on statutory tax liabilities upheld, postapproval tax demands held invalid and review dismissed.

An approved resolution plan was held to bind statutory tax liabilities such that tax demands raised after plan approval for earlier assessment years were ... Review petition - Demands for income tax that were raised after the date of approval of the Resolution Plan - binding nature of an approved Resolution Plan on statutory dues - Condonation of delay - delay of 208 days HELD THAT:- Despite the fact that there is a delay of 208 days in filing the Review Petition for which no satisfactory explanation has been furnished, we have gone through the same on merits. In our opinion, no case for review of the judgment [2025 (3) TMI 1052 - SUPREME COURT]is made out wherein held Resolution Plan approved on 21st May 2019 is binding on the first respondent. Therefore, the subsequent demand raised by the first respondent for the assessment years 2012-13 and 2013-14 is invalid. Review Petition is, accordingly, dismissed on the ground of delay as well as on merits. Issues: Whether the Review Petition seeking review of the judgment dated 20.03.2025 should be entertained despite a 208-day delay and whether the petition merits review on merits.Analysis: The Review Petition was examined on two aspects: (i) delay in filing of 208 days without a satisfactory explanation, and (ii) merits of the review. On the delay aspect, the filing period was not adequately explained, and no justification was found to condone the delay. On the merits aspect, the review material was considered and found not to establish any error or ground warranting review of the earlier judgment dated 20.03.2025.Conclusion: The Review Petition is dismissed on the ground of delay and on merits; the result is adverse to the petitioner and favourable to the assessee.