Pre-CIRP tax and TDS demands are extinguished after Resolution Plan approval if not included in the plan.

Pre-CIRP income tax and TDS demands do not survive once a Resolution Plan is approved under the Insolvency and Bankruptcy Code if those claims are not included in the approved plan. The Bombay HC treated the position as settled that omitted claims stand extinguished and cannot be enforced through the Income Tax or TDS portals after NCLT approval. It also recognised that consequential relief must follow, including recomputation of liability and refund after giving effect to the insolvency orders.

---

---

Issues: Whether pre-CIRP income tax and TDS demands could survive and be enforced after approval of the Resolution Plan under the insolvency process.

Analysis: The Resolution Plan had been approved by the Adjudicating Authority under the Insolvency and Bankruptcy Code, 2016, and the Court treated the legal position as settled that claims not forming part of the approved plan stand extinguished. On that basis, the Revenue could not continue to enforce demands relating to the period prior to approval of the Resolution Plan, whether appearing on the Income Tax Portal or the TDS portal. The Court also directed consequential recomputation of liability and refund after giving effect to the NCLT orders.

Conclusion: The issue was answered in favour of the assessee. The pre-Resolution Plan demands were held not to survive and the Revenue was directed to extinguish them and grant consequential relief.

---