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TMI Blog2025 (3) TMI 1384X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Karan G. Sanghani waives service of the notice of the rule on behalf of the Respondent. With the consent of the learned advocates for the respective parties, the matter is taken up for hearing, as the issue involved is very short. 3. The petition has been filed under Article 226 of the Constitution of India with the following prayers:- "a) Quash and set aside the impugned notice u/s 263 dated 13.01.2025 at 'ANNEXURE - A' to this petition; b) pending the admission, hearing and final disposal of this petition, to stay further proceedings pursuant to the impugned notice; c) any other and further relief deemed just and proper be granted in the interest of justice; d) to provide for the cost of this petition." 4. The brief fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d for the waiver and extinguishment of all the unassessed/assessed tax liabilities for the period prior to the NCLT approval date. 4.6 The Respondent has issued the impugned notice dated 13.01.2025, under Section 263 of the Act, seeking to revise the assessment order dated 06.03.2023 for the Assessment Year 2015-16. 4.7 Challenging the legality of the impugned notice dated 13.01.2025, the Petitioner has filed this Petition. 5. Mr. B.S. Soparkar, learned advocate appearing on behalf of the petitioner submitted that on the approval of the Resolution Plan under Section 31 of the IBC, all dues of the Corporate Debtor except those which have been specifically provided for in the Resolution Plan would stand extinguished in terms of the provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the relevant portion extracted below:- "EFFECT OF THE RESOLUTION PLAN" 8.1 In terms of Section 31(1) of the IBC, this Resolution Plan shall be binding on the Corporate Debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority to whom a Debt in respect of the payment of dues arising under any law for the time being in force, such as authorities to whom statutory dues are owed, guarantors and other stakeholders of the Corporate Debtor on and from the NCLT Approval Date. 8.2 Upon approval of this Resolution Plan by the NCLT, the following settlements shall be deemed to have been approved by the NCLT and be binding in terms of Section 31(1) of the IBC" ..... ..... ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding/ penalty proceedings u/s 270A of the Income Tax Act, 1961 or any other provisions of thereunder on account of income tax Proceedings outstanding for FY 12-13 or any other assessment year/financial year upto the NCLT Approval Date, shall stand extinguished. (mm) On and from the NCLT Approval Date, all outstanding TDS demands against the Corporate Debtor for various years including TDS demand amounting to INR 0.65 cr shall stand waived and extinguished in entirety. (nn) With effect from the NCLT Approval Date, any prosecution risk on account of delayed/non-deposit of TDS/TCS for the period prior to the NCLT Approval Date shall stand waived and extinguished and in the event and Proceedings have been initiated pursuant to the afo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Plan or affect the timelines for implementation in any manner whatsoever. (qq) On and from the NCLT Approval Date, any adverse tax implication under section 41(1) of the Income Tax Act, 1961 on account of write off of trade payables shall stand waived and extinguished given that no tax deduction was claimed for such amounts in the past years and no Proceedings shall be initiated by any Person in this regard for the period prior to the NCLT Approval Date. 7. From the perusal of the above, it is evident that all tax liabilities, assessed and unassessed under the Income Tax Act, 1961 "shall stand waived and extinguished". 8. In Essar (Supra), the Hon'ble Apex Court has held as under:- "107. For the same reason, the impugned NCLAT ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such 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 IBC is clarificatory and declaratory in nature and therefore will be effective from the date on which IBC 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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