TMI Blog2024 (3) TMI 1083X X X X Extracts X X X X X X X X Extracts X X X X ..... pproved by the NCLT - HELD THAT:- Section 148 read with Section 147 of the Act only deals with a situation where any income chargeable to tax has escaped assessment for any assessment year. We are unable to fathom as to how the provisions of Section 148 of the Act can be applied for collection of evidences of third party, ex-promoters etc., and we say this because there are separate provisions under Section 133(6) of the Act in which, such evidences can be collected. We are also unable to understand how the provisions of Section 148 of the Act can be used when the proceedings are not for recovery of tax. During the course of submission, the Learned ASG stated that in view of the legal position as it stands under the Code, once resolution pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned ASG a/w Mr. Suresh Kumar, Mr. Sheelong Shah, Mr. Jalaj Prakash Ms Vaibhavi Chaudhary. P.C. : WRIT PETITION NO.3128 OF 2022 1. Petitioner is challenging the notice dated 27th February 2021 issued by respondent no. 1 under section 148 of the Income-tax Act, 1961 ( the Act ) for the assessment year 2013-14, the order dated 6th December 2021 passed by respondent no. 1 rejecting the objections of petitioner for assessment year 2013-2014, the assessment order dated 18th February 2022 passed under section 144 r.w.s. 147 of the Act for assessment year 2013-2014 and the penalty notice dated 23rd March 2022 issued under section 274 r.w.s. 271(1)(c) of the Act for the assessment year 2013-14. 2. On or about 29th June 2017, State Bank of India fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , inter alia, that the proceedings for assessment year 2013-14, being a period prior to the closing date are non-est and could not have been initiated by the Income-tax Department in view of the resolution plan approved by the NCLT, respondent no. 1, vide order dated 6th December 2021, rejected the submission of petitioner by inter alia holding that .all income tax proceedings are not always for recovery of tax, it can be used for collection of evidence of third parties, expromoters etc 5. Thereafter, respondent no. 1 has also proceeded to pass an order dated 18th February 2022 under section 144 r/w section 147 of the Act, making an addition of Rs. 109.70 crores to the income of petitioner. It is noted that although at paragraph 9.5 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Section 148 read with Section 147 of the Act only deals with a situation where any income chargeable to tax has escaped assessment for any assessment year. We are unable to fathom as to how the provisions of Section 148 of the Act can be applied for collection of evidences of third party, ex-promoters etc., and we say this because there are separate provisions under Section 133(6) of the Act in which, such evidences can be collected. We are also unable to understand how the provisions of Section 148 of the Act can be used when the proceedings are not for recovery of tax. 9. During the course of submission, the Learned ASG stated that in view of the legal position as it stands under the Code, once resolution plan has attained finality, new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w for the time being in force. Therefore, the resolution plan approved under section 31 of the Code will be applicable even if the department contends that the same is inconsistent with the provisions of the Act. Hence, proceedings cannot be initiated contrary to the resolution plan. It is to be noted that as per paragraph 3.3.5 of the resolution plan, the value of all dues including income tax dues is treated as nil and is deemed to have been fully discharged and settled for any period prior to the closing date irrespective of whether final or contingent, whether disputed or undisputed, whether or not the Government authority was aware of such claim. Further para 3.3.3 of the Resolution Plan also provides that all proceedings initiated bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of third parties, ex-promoters, etc. is not within the scope and ambit of section 147 / 148 of the Act, as reassessment proceedings under the said section can only be initiated for bringing to tax income which has escaped assessment, is correct. Further, petitioner s present management is ex-facie not aware of the relevant facts in respect of the period sought to be reopened and may well be incapable of properly participating in reassessment proceedings. In this view of the matter the proposed reassessment proceedings (no matter what the purpose) would be a futile endeavour. (e) Insofar as the contention/submission of the revenue regarding the possible liability of previous management, the Revenue may take whatever steps are avail ..... X X X X Extracts X X X X X X X X Extracts X X X X
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