TaxTMI 
TaxTMI 
2025 (7) TMI 907
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.... 2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Karan G. Sanghani waives service of the notice of rule on behalf of the respondent. 3. With the consent of the learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short. 4. The petition has been filed under Article 226 of the Constitution of India with the following prayers :- "(a) Quash and set aside the impugned notice u/s 148 of the Act dated 31.03.2015 at Annexure A to this petition; (b) Pending the admission, hearing and final disposal of this petition, to stay further proceedings pursuant to the impugned notice; (c) Any other and further relief deemed just and proper by grant....
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....nt of all the unassessed/assessed tax liabilities for the period prior to the NCLT approval date. 5.6 The respondent has issued the impugned notice dated 31.03.2025, under Section 148 of the Act. 5.7 Challenging the legality of the impugned notice dated 31.03.2025, the petitioner has filed this petition. 6. Mr. B.S. Soparkar, learned advocate appearing on behalf of the petitioner submitted that on the approval of the Resolution Plan under Section 31 of the IBC, all dues of the Corporate Debtor except those which have been specifically provided for in the Resolution Plan would stand extinguished in terms of the provisions of the IBC and the decisions of the Hon'ble Apex Court in the case of The Committee of Creditors of Essar Steel ....
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....n by the NCLT, the following settlements shall be deemed to have been approved by the NCLT and be binding in terms of Section 31(1) of the IBC" ..... ..... (ii) It is also clarified that any Tax liabilities pertaining to a period prior to and Including the NCLT Approval Date (including penalties levied or leviable, prosecution and interest), even if such past liability pertaining to the aforesaid period arises any time in the future post the NCLT Approval Date whether assessed or unassessed or determined or undetermined, by the relevant Governmental Authority shall be deemed to be extinguished and written off with effect from the NCLT Approval Date. (jj) With effect from the NCLT Approval Date, the Corpor....
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....ion risk on account of delayed/non-deposit of TDS/TCS for the period prior to the NCLT Approval Date shall stand waived and extinguished and in the event and Proceedings have been initiated pursuant to the aforesaid, the same shall stand extinguished and abated. The Corporate Debtor shall file necessary applications as may be required to give effect to the aforesaid and as may be required under the provisions of Applicable Laws. It is further clarified that such filings shall not be condition to the implementation of this Plan or affect the timelines for Implementation in any manner whatsoever. (oo) On and from the NCLT Approval Date, all unassessed / assessed Tax liabilities for period prior to the NCLT Approval Date, in relation ....
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.... tax liabilities, assessed and unassessed under the Income Tax Act, 1961 "shall stand waived and extinguished". 9. In case of The Committee of Creditors of Essar Steel Ltd. (Supra), the Hon'ble Apex Court has held as under:- "107. For the same reason, the impugned NCLAT judgment in holding that claims that may exist apart from those decided on merits by the resolution professional and by the Adjudicating Authority/Appellate Tribunal can now be decided by an appropriate forum in terms of Section 60(6) of the Code, also militates against the rationale of Section 31 of the Code. A successful resolution applicant cannot suddenly be faced with "undecided" claims after the resolution plan submitted by him has been accepted as this wou....
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....eclaratory in nature and therefore will be effective from the date on which IBC has come into effect. 102.3 Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval under Section 31 could be continued. 138 In the forgoing paragraph, we have held that the 2019 Amendment to Section 31 IBC is clarificatory and declaratory in nature and therefore will have a retrospective operation. As such, when the resolution plan is approved by NCLT, the claims, which are not p....