TaxTMI 
TaxTMI 
2026 (7) TMI 435
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....the issue involved in these petitions are one and the same, they are taken up for hearing together and are disposed of by this common judgment. Special Civil Application No. 13194 of 2023 is ordered to be taken up as a lead matter. 2. By way of this writ-petition, the petitioner has challenged the Notice dated 13.04.2023 issued under the provision of Section 148 of the Income Tax Act, 1961 (for short 'the Act') as well as the order dated 13.04.2023 passed under Section 148A(d) of the Act, seeking to reopen the income tax assessment of the petitioner for the Assessment Year (for short 'A.Y.') 2019-20. 3. The reopening of the assessment is sought by issuance of the Notice dated 01.03.2023 under clause (b) of Section 148A of the Act call....
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....was appointed. Ultimately, the NCLT vide order dated 19.12.2019 ordered liquidation of the petitioner - Vimal Oil and Foods Limited. The liquidator thereafter issued an invitation for Expression of Interest to sell the petitioner as a 'going concern' together with all the connected licenses, permissions, trademarks, patents, registrations, formulations and property rights in accordance with the provision of the Insolvency and Bankruptcy Code, 2016 (for short 'the Code, 2016'). The petitioner also pointed out that, thereafter, the liquidator executed a sale agreement dated 03.03.2021 in favour of Arrhum Tradelink Private Limited (for short 'the ATPL'), thereby selling the petitioner to ATPL as a going concern. Thus, it was submitted that the....
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....in favour of the petitioner. 4.4. Finally, it is submitted that the reopening is premised on conjectures and surmises, as the Assessing Officer has expressed that the petitioner might have claimed deduction of interest on such loan, which was never paid, though all the profit and loss accounts could have been verified by the Assessing Officer before reopening of the assessment. 4.5. Thus, it is urged that the reopening of the assessment for A.Y. 2019-20 may be quashed and set aside. 5. Opposing the present petition and foregoing submissions, learned Senior Standing Counsel Mr. Aaditya Bhatt has submitted that the reopening of the assessment may not be quashed and set aside, as it appears that the petitioner while adopting the CIRP ....
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....vide order dated 19.12.2017 passed by the NCLT, Ahmedabad Bench. Ultimately, since the resolution plan was not approved, the NCLT vide order dated 19.12.2019 ordered liquidation of the petitioner. These liquidation proceedings initiated by the liquidator culminated into the sale agreement executed on 03.03.2021 in favour of ATPL and thereby ATPL selling to the petitioner as a going concern. 8. Regulations-32(e) of The Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016 mentions that the petitioner was acquired as a going concern by ATPL, and the petitioner has been taken over by ATPL on a 'clean slate' with a clear understanding that all the past liabilities / investigations shall stand extinguished, as per t....
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....sale agreement dated 03.03.2021. With regard to the interest of the loan as alleged of Rs. 13.52 crores, it was clarified that the petitioner has never claimed a deduction of such interest payable to Andhra Bank (subsequently named as CFM ARC). The petitioner also asserted that the liability of bankers has ceased to exist and even NOC / No Due Certificate is issued in favour of the petitioner, since the Andhra Bank has become NPA since financial year 2015-16 and the petitioner had not claimed interest in the profit and loss account since financial year 2015-16. Thus, after tendering such explanation to the show cause notice, the petitioner urged that there is no escapement of income as alleged, however, the respondent thereafter issued a No....
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....o whom such property has been transferred for consideration and without notice of such charge. The State moved in to get a charge registered on 15.12.2022 much later." 12. Thus, the Coordinate Bench, after placing reliance on the settled legal position by the Supreme Court in the case of Ghanshyam Mishra & Sons (Private) Limited vs. Edelweiss Asset Reconstruction Company Limited, (2021) 126 taxmann.com 132, has held that the action of the State of insistence of maintaining the charge in the revenue record as illegal on the principles of clean slate. 13. In the instant case, the reopening is premised on surmises and conjectures expressed by the Assessing Officer. The reopening is premised on a presumption that the petitioner might have....