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TMI Blog2025 (5) TMI 260X X X X Extracts X X X X X X X X Extracts X X X X ..... re interim orders by which the respondent Income-tax Department was permitted to proceed further pursuant to the notices issued by the respondents under Section 148A(b) of the Income Tax Act, 1961 (the Act) dated 24th April 2023 for the two assessment years, namely 2016-17 and 2019-20. The learned Single Bench held that the action to be taken by the Department including passing of any order shall abide by the result of the writ petition. Aggrieved by such order, the appellant has filed the present appeals. With the consent of the learned Advocates on either sides, the appeals as well as both the writ petitions being WPO/141/2025 and WPO 142/2025 are taken up for disposal. Since the facts are identical and the legal issue to be decided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it petition at the behest of the appellant before the Hon'ble Supreme Court, who was a corporate debtor, was not maintainable. The Hon'ble Supreme Court considered the said submission and in paragraph 153 of the judgment, it was held that the High Court erred in holding that the appellant company (therein) does not have locus to file the writ petition inasmuch as the management has been taken over by M/s. Vedanta Ltd. The resolution plan is in respect of corporate debtor and the successful resolution applicant only takes over the management of the corporate debtor in accordance with the resolution plan. The resolution applicant steps into the shoes of the corporate debtor. Such finding in this respect would also not be sustainable in law. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made it clear that the Court has not gone into the issue of jurisdiction that has been raised by the petitioner and granted liberty to raise all points of law once the moratorium is lifted. Therefore, at the earliest point of time, the petitioner was prompt in challenging the proceedings initiated by the Department under Section 148A(d) of the Act by approaching this Court and the stand taken by the petitioner was accepted and taking note of the fact that the moratorium was in operation, the Court restrained the authorities from proceeding further with the matter. The NCLT approved the resolution plan by order dated 11.8.2023 which was informed to the Income Tax Department by the appellant/writ petitioner on 1.10.2024. The department by co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation and deal with the points raised in the explanation and then proceed to record his conclusion. This basic principle has been lost sight of by the assessing officer while passing the order dated 24.4.2023. This ground would be more than sufficient to quash the said order and the entire proceeding. However, since submissions were made on either side on the other issue as well, we have examined the other contentions. To decide the other issues as to whether the assessing officer could have continued the proceeding on and after the admission of the application by NCLT and the public announcement thereof and after the NCLT has approved the resolution plan, we find the answer in the decision of the Hon'ble Supreme Court in Ghanashyam Mis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... solvency and sought to distinguish the decision and observed that the said decision has not been rendered in the context of voluntary corporate insolvency. Going by the scheme of IBC we find that there is no such distinction curbed out between voluntary and non-voluntary corporate insolvency and the consequences also do not make any such distinction pursuant to a petition filed under section 7 of the IBC. This issue was considered by the Hon'ble Division Bench of the High Court at Delhi in M Tech Developers Pvt Ltd. vs. NFAC, Delhi & Anr. WP(C) 15567/2022 dated 15.4.2024. We agree with the view expressed by the Division Bench of the High Court at Delhi in M Tech Developers Pvt Ltd. (supra). Apart from that, it is also to be noted that in te ..... X X X X Extracts X X X X X X X X Extracts X X X X
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