TaxTMI 
TaxTMI 
2022 (5) TMI 620
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....ented the Revenue. 4. Brief facts as culled out from the records are that the assessee is in the business of manufacturing ferro alloys. It e-filed the return on 30.09.2013 which was revised on 14.01.2014 for a total income of Rs. 47,33,384/- and paid income-tax on the book profit of Rs. 5,03,88,957/- u/s 115JB of the Act. Among other things, Ld. AO noted from the profit and loss account that assessee had debited an amount of Rs.14,29,442/- in its profit and loss account towards sundry balances written off. The AO on examination of accounts observed that a sum of Rs. 6,08,854/- was on account of excise duty and for others an amount of Rs. 7,416/- was written off which were not offered for taxation in earlier years. The AO disallowed both the said claims and added back the same, totalling to Rs. 6,16,270/- (Rs. 6,08,854 + Rs.7,416) to the total income of the assessee. Aggrieved, the assessee went into appeal before the Ld. CIT(A) who dismissed the appeal of the assessee by holding that there are no material or new facts offered for consideration. Aggrieved by the order of Ld. CIT(A) the assessee is in appeal before the Tribunal. 5. At the outset, Ld. Counsel for the assessee place....
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...., interest, fines cesses, unpaid tax deducted at source/tax collected at source, whether admitted or not due or contingent whether part of above claim of income tax authorities or not 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 in relation to any period prior to the acquisition of control by the resolution applicant over the company pursuant to this plan shall extinguish 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 not payable by the company by virtue of the order of the adjudicating authority. All notices proposing to initiate any proceedings against the company in relation to the period prior to the date of adjudicating authority order and pending on that date, shall be considered deleted a....
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....the developments apprised to the Bench by the Ld. Counsel which have taken place post filing of appeal before us. From the Resolution Plan of Resolution Applicant viz. M/s. Consortium of United Tradeco FZC and QVC Exports Pvt. Limited, the claim of the resolution applicant was pointed out by the Ld. Counsel in respect of Liabilities / Litigations / Disputes / Appeals with Income Tax Dept which is extracted as under - At Page 46 - "Waiver Approval by NCLT for all Liabilities (including Contingent Liabilities, Disputed Liability, Interest, Penal Interest, Penalty, Interest on Penalty, any kind of Late Fee as well as Taxes) related to Income Tax and any demand related to non-deposit of TDS which may arise out of any Ongoing Disputes Known or in abeyance and Unknown to Resolution Applicants upto the end of the Resolution Process be treated as Finally Settled at "NIL Value". At Page 47 - "Liability which may accrue to Provisions of MAT and Other Sections of Income Tax Act - Waiver by NCLT for any liability (includes Tax, MAT, interest, fine, penalty etc) on Corporate Debtor, Resolution Applicants on account of various actions prospered in the Approved Resolution Plan including but n....
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....s the following order: ORDER The Resolution Plan of M/s. Consortium of United Tradeco FZC and QVC Exports Pvt. Limited which is approved by the CoC with 95.86% voting percentage, is hereby approved under provisions of section 31(1) of the Insolvency & Bankruptcy Code, 2016, which will be binding on the Corporate Debtor, its employees, members, creditors, coordinators and other stakeholders involved in the Resolution Plan." 7.2. We have gone through the order of the Co-ordinate bench of ITAT Kolkata in the case of Palogix Infrastructure (P.) Ltd. (supra), relevant extracts of which are reproduced herein below for ease of reference - "7. The issue involved in the additional ground raised by the assessee relates to the effect of the order delivered by the National Company Law Tribunal, Kolkata Bench on 12-2-2018 approving the resolution plan on the proceedings in the case of the assessee for AY 2010-11, which is involved in the present appeal. The said order is passed under the Insolvency and Bankruptcy Code, 2016, section 238 of which reads as under:- "The provisions of this Code shall have effect, notwithstanding anything inconsistent therewith contained in any other la for ....
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....ct 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 include Central Government, State Government and other Local Bodies. As per the said order delivered in the case of the assessee-company affirming the Resolution Plan, all dues under the provisions of the Income-tax Act including taxes, duty, penalties, interest, fines, cesses, unpaid tax deducted at source/tax collected at source, whether admitted or not, due or contingent, whether part of above claim of income tax authorities or not, whether part of tax due diligence finding or not asserted or unasserted, crystallized or uncrystallized, known or known, secured or unsecured, disputed or undisputed in relation to any period prior to the acquisition of control by the resolution....