TaxTMI 
TaxTMI 
2026 (7) TMI 1419
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....ax (Appeals) [CIT(A)] has been dismissed. The assessment year in question is Assessment Year 2012-13. The Revenue has proposed the following substantial questions of law for consideration in the present appeal: QUESTION OF LAW i. On the facts and in the circumstances of the case and in law, the Hon'ble ITAT erred in deleting the subcontract charges of Rs. 15,37,38,561/- paid to M/s. Naftogasz (India) Pvt. Ltd. Without appreciating the fact that the onus cast upon the assessee was not discharged either during the assessment proceedings or remand proceedings." ii. On the facts and in the circumstances of the case and in law, the Hon'ble ITAT erred in concluding that no adverse material has been placed by the assessi....
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....essee that throughout the CIRP proceedings before the NCLT and the COC, the income-tax demand arising from the assessment order, which was the subject matter of the appeal before the Commissioner of Income Tax (Appeals), did not form part of the Resolution Plan as approved by the COC and the NCLT. It is further submitted on behalf of the assessee that, once the assessee had substantially succeeded before the Commissioner of Income Tax (Appeals), no enforceable demand under the assessment order survived. It is submitted although the Revenue had challenged the order of the Commissioner of Income Tax (Appeals) before the Tribunal; however, mere pendency of such appeal did not result in the revival or crystallisation of any subsisting demand ag....
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....e Insolvency and Bankruptcy Code, 2016, as it would render it impossible for the corporate debtor to revive and recommence its business on a clean slate. The relevant observations of the Supreme Court, which have a direct bearing on the issue involved in the present case, are reproduced below: 7. Section 31(1) of the IB Code provides for the legal effect of approval of the Resolution Plan. Section 31(1) reads thus: "(1) If the Adjudicating Authority is satisfied that the resolution plan as approved by the committee of creditors under sub-section (4) of section 30 meets the requirements as referred to in sub-section (2) of section 30, it shall by order approve the resolution plan which shall be binding on the corporate debtor and....
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....h claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. 102.2. The 2019 Amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which the I&B Code 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 approva....
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....CLT is perverse. 10. Before we part with this judgment, we may note that on the application made by the second respondent, the NCLT issued notice to the first respondent by order dated 27% August 2020. However, by the order dated 17 September 2020, which was impugned before the NCLAT, without considering the merits and without recording reasons, the NCLT held that the application was frivolous as the second respondent was seeking relief, which the Bench did not consider at the time of the approval of the Resolution Plan. The NCL also imposed costs of Rs. one lakh on the appellants and the second respondent. W cannot approve NCLT's approach of not considering the application on merits an dismissing the same without recording any reasons a....
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....essfully take over the business of the corporate debtor. All claims must be submitted to and decided by the resolution professional so that a prospective resolution applicant knows exactly what has to be paid in order that it may then take over and run the business of the corporate debtor. This the successful resolution applicant does on a fresh slate, as has been pointed out by us hereinabove. For these reasons, NCLAT judgment must also be set aside on this count." 13. It was pointed out to us that a Review Petition was preferred before the Supreme Court seeking a review of its judgment in Vaibhav Goel & Anr. The said Review Petition came to be dismissed by an order dated 29 January 2026, reported in 2026 (2) TMI 375 (SC). The dismissal....