2025 (7) TMI 1318 - SCH - Income Tax

Validity of reassessment proceedings after the approval of a resolution plan under the Insolvency and Bankruptcy Code 2016 - as decided by HC 2024 (9) TMI 371 - BOMBAY HIGH COURT evidently and admittedly the reassessment proceedings pre-date the CIRP. They would relate to the period prior to the approval of the resolution plan of the Petitioner-Assessee and therefore stand extinguished. This is why the Supreme Court has clearly ruled that initiation and continuation of proceedings relating to the period prior to the approval of the resolution plan cannot be indulged in. Upon completion of the CIRP the Petitioner-Assessee has completely changed hands and has begun on a clean slate under new ownership and management. Consequently all the notices and communications issued by the Revenue in connection with the Impugned Proceedings and the consequential actions as impugned in this Writ Petition are hereby quashed and set aside HELD THAT - We are not inclined to interfere with the impugned judgment and order of the High Court; hence the Special Leave Petition is dismissed. Pending application(s) if any shall stand disposed of.

Summary

The Supreme Court, per Hon'ble Justices Manoj Misra and Ujjal Bhuyan, after hearing counsel, "condoned delay" but declined to interfere with the impugned High Court judgment and order. Consequently, the Special Leave Petition was dismissed, and all pending applications were disposed of.