TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 1314
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....erim Application (L) No. 31813 of 2025 is allowed and the Petitioner is permitted to carry out the said amendment. The amendment shall be carried out forthwith in front of the Associate. Re-verification is dispensed with. 2. Rule. Respondents waive service. With the consent of the parties, Rule made returnable forthwith and heard finally. 3. By this Petition, the Petitioner prays for quashing and setting aside of the assessment proceedings for the Assessment Years 2022-23 and 2023-24 on the ground that conducting these proceedings would be an academic exercise since no demand can be raised on the Petitioner nor can its claim for carry forward of unabsorbed losses or unabsorbed depreciation be denied. It is stated that prior to the commencement of the impugned assessment proceedings, a resolution plan submitted by one 'AM Mining India Private Limited' in the Petitioner's case came to be approved by the National Company Law Tribunal, Ahmedabad Bench ("NCLT") vide its order dated 13th April 2023 as per Section 31 of the Insolvency and Bankruptcy Code, 2016 (for short "the IBC"). In paragraph 9 of its order, the NCLT has categorically ruled that "all such claims which are not a p....
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....e I.T. Act and since no objection was raised during the stage of those proceedings, now the Respondents cannot be permitted to re-examine the same by issuing notices to carry out assessment proceedings as that would be contrary to the "clean slate" principle. He submitted that that availability of such losses was undoubtedly one of the factors that would have been taken into account by the Resolution Applicant when submitting its proposal. 7. Mr. Suresh Kumar, the learned Counsel for the Respondents relied on the stand taken in the affidavit in reply and in the impugned order dated 7th February 2025 rejecting the objections raised by the Petitioner. 8. We have heard the learned counsels for the parties. The issue to be decided in the present petition is whether the Respondents can be permitted to proceed with the assessment proceedings when the approved Resolution Plan expressly prohibits any person from initiating or continuing any proceedings against the Petitioner. The implementation date of the Resolution Plan was 6th May 2023 and the impugned proceedings pertain to the period prior to the implementation date. We find that the challenge to the proceedings to be well found....
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.... In the case of AMNS Khopoli Limited v/s. Assistant Commissioner of Income Tax and Others, reported in [(2024) SCC OnLine Bom 1213], this Court held thus: "11. ...A similar situation came up for consideration before this court in the case of Alok Industries Limited vs. Assistant Commissioner of Income Tax where the court following the judgment of the Hon'ble Apex Court in Ghanshyam Mishra & Sons Pvt. Ltd. vs. Edelweiss Asset Reconstruction Company Ltd., held that all dues including statutory dues owed to the Central Government, 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 a period prior to the date on which the Adjudicating Authority grants its approval under Section 31 of the Act could be continued. Even though in the case of Alok Industries Limited (supra) notices had been issued under Section 148A of the Act and Section 148 of the Act, in our view that would not make any difference. We should also note that even in Alok Industries Limited (supra) the Revenue had made it clear that they do not wish to recover any money from assessee... 15. In the circumstances....
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....ter the approval of the resolution plan. Consequently, nothing would survive insofar as the Impugned Proceedings relate to the Petitioner-Assessee. 17. We may mention that a co-ordinate bench of this Court has followed and applied Ghanashyam Mishra in at least two judgments, to rule that proceedings initiated by the Revenue in respect of tax for a period prior to the CIRP, cannot be continued. In Alok Industries Ltd. v. Assistant Commissioner of Income-tax3, a Division Bench of this Court held in favour of the Assessee quashing various proceedings for reassessment initiated against a corporate debtor that had undergone a resolution under the IBC. So also, in AMNS Khopoli Limited v. Assistant Commissioner of Income Tax and Others (AMNS Khopoli) the reassessment proceedings initiated in the facts of that case were quashed and set aside by a Division Bench of this Court..." 12. This issue has also come up for consideration before this Court in the case of Swan Defence and Heavy Industries Ltd V/S Assistant Commissioner of Income Tax Central Circle 6(3) & Ors (in Writ Petition (L) No.22088 of 2025). In that case, following the ratio laid down by the Hon'ble Supreme Court in....