AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (10) TMI 1255
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....y, which is engaged in the business of Railway Siding Utilization Activity. The return of income for the year under consideration was filed by it on 27.09.2010 declaring total income of Rs. 14,04,73,374/-. In the assessment completed under section 143(3) of the Act vide an order dated 19.03.2013, the total income of the assessee was determined by the Assessing Officer at Rs. 47,57,16,809/- after making various additions/disallowances. 3. Against the order passed by the Assessing Officer under section 143(3) of the Act, an appeal was preferred by the assessee before the ld. CIT(Appeals) challenging the validity of the assessment made by the Assessing Officer under section 143(3) of the Act as well as disputing the various additions/disallow....
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.... whether part of tax due diligence finding or not, asserted or unasserted, crystallized or un-crystallized, known or known, secured or unsecured, disputed or undisputed, present or future, in relation to any period prior to the acquisition of control by the resolution applicant over the company pursuant to this plan shall extinguished by virtue of the order of the adjudicating authority and the company should not be liable to pay any amount against such demand. All assessments or other proceedings pending in case of the company, on the date of the order of the adjudicating authority relating to the period prior to that date, shall stand terminated and all consequential liabilities, if any, should be deleted and should be considered to be no....
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....d/not realisable/non-existing and as not payable by the company and any proceedings which are pending or kept in abeyance regarding period prior to 12th February, 2018 be dropped or not to be revived post the order of adjudicating authority". Thereafter the assessee-company moved another application withdrawing the abovementioned additional ground and seeking admission of the following additional ground:- "That in the light of the order of the Hon'ble National Company Law Tribunal and peculiar facts of the case, Hon'ble Income Tax Appellate Tribunal shall ascertain that realisable tax liability of assessee for the assessment year under consideration i.e. A.Y. 2010-11 is NIL". 6. When the application of the assessee for admission of the ....
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....ection 238 of which reads as under:- "The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the time being in force or any instrument having effect by virtue of any such law". 8. The provisions of the Insolvency and Bankruptcy Code 2016 thus are given overriding effect and as held by the Hon'ble Supreme Court while disposing petition for Special Leave to Appeal(C) Nos. 6483/2018 in the case of Principal Commissioner of Income Tax -vs.- Monnet Ispat and Energy Ltd., it is obvious that the Insolvency and Bankruptcy Code 2016 going by section 238 will override anything inconsistent contained in any other enactment, including the Income Tax Act, 1961. A reference in this....
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....said section 31 was subsequently amended in 2019 to clarify that the term "other stakeholders" include Central Government, State Government, and other local bodies, and this amendment has been held by the Courts as having retrospective effect being clarificatory and declaratory in nature. 11. Keeping in view the legal position emanating from the discussion made above in the light of judicial pronouncements of the Hon'ble Supreme Court, it is thus clear that the order passed by the National Company Law Tribunal under section 31 of the Insolvency and Bankruptcy Code 2016 has overriding effect over anything inconsistent contained in the Income Tax Act and it shall be binding on all the respective entities including other stakeholders, which i....
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....not be proceeded against. Post the order of the adjudicating authority, no reassessment/revision or any other proceedings under the provisions of the Income Tax Act should be initiated on the company in relation to period prior to acquisition of control by the resolution applicant over the Company pursuant to this plan shall stand extinguished by virtue of order of the National Company Law Tribunal and the assessee-company should not be liable to pay against such demand. 12. Since the present appeal involving AY 2010-11 relates to the period prior to the acquisition of control by the Resolution Applicant over the company pursuant to this plan, all dues under the provisions of the Income Tax Act 1961 including taxes, duty, penalties, intere....