TMI Blog2020 (10) TMI 388X X X X Extracts X X X X X X X X Extracts X X X X ..... zation and insolvency resolution of Corporate Debtors in a time bound manner and to inspire life into a Corporate Debtor struggling to repay its debts. Section 238 was inserted in the Code. Provisions of this Section 238 override other laws - The Income Tax Department is not in order to attach the properties of the Corporate Debtor when CIRP of the Corporate Debtor has started and the Resolution Professional is the custodian of the properties of the Corporate Debtor. The properties attached need to be returned to the Resolution Professional so that Corporate Insolvency Resolution Process is completed in time. The Respondents No. 1 and 2 are directed to release the properties of the Corporate Debtor in favour of the applicant - The Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... search action, certain incriminating documents were found that led to the conclusion that the Corporate Debtor had indulged in systematic tax evasion and not paid taxes on due income by claiming depreciation on the plant and machinery that never installed and production never started. The depreciation is claimed to the tune of ₹ 165.48 (Amount seems to be wrong) during the is termed as bogus depreciation. 4. It is further stated that vide order dated 27.04.2018, the Investigating Officer, under section 132(9B) of the IT Act provisionally attached the assets (mentioned in the order) of the Corporate Debtor for a period of six months commencing from 27.04.2018 and the said order for provisional attachment of the assets of the Corpora ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... porate Debtor and if the properties of the Corporate Debtor are not released, it shall also have a huge impact on the number of investors showing interests in resolving insolvency of the Corporate Debtor on account of doubt of release of assets which will substantially impact the resolution process of the Corporate Debtor and the Corporate Debtor may go into liquidation. 8. With all these apprehensions, the Resolution Professional has made the prayers before this Bench to declare that sanction/approval of the Respondents for attachment of the properties of the Corporate Debtor be declared in violation of Section 14 of the Code and direct the Respondents to release the properties of the Corporate Debtor in favor of the application. 9. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to repay its debts. Section 238 was inserted in the Code. Provisions of this Section 238 override other laws as decided by the Hon'ble Supreme Court in Duncans Industries Ltd. v. A J. Agrochem, 10.3 The Income Tax Department is not in order to attach the properties of the Corporate Debtor when CIRP of the Corporate Debtor has started and the Resolution Professional is the custodian of the properties of the Corporate Debtor. The properties attached need to be returned to the Resolution Professional so that Corporate Insolvency Resolution Process is completed in time. 10.4 The prayer of the Resolution Professional relating to Prayer C is accepted the Respondents No. 1 and 2 are directed to release the properties of the Corporate Debt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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