2025 (7) TMI 711 - SCH - IBC

Claim of refund for the assessment year 2019-2020 from Income Tax Department - rejection of refund holding that it is not within the jurisdiction to direct Income Tax Department to give refund - waterfall mechanism as per Section 53 of the IBC - it was held by NCLAT that There is no illegality committed by the Ld. Adjudicating Authority while passing the impugned order in view of provisions of Section 245 of the Income Tax Act 1961. HELD THAT - No case is made out to interfere. The appeal is accordingly dismissed.

Summary

The Supreme Court, through Justices Abhay S. Oka and Ujjal Bhuyan, upheld the decision of the National Company Law Appellate Tribunal (NCLAT), holding that the appellant's prayer for a refund from the Income Tax Department "could not have been considered by the NCLAT." The Court noted that the appellant's remedy remains "kept open under the impugned judgment," and therefore, "no case is made out to interfere." The appeal was dismissed, with the Court emphasizing that neither the National Company Law Tribunal nor the NCLAT adjudicated on the refund claim.