The assessee was admitted to be the corporate debtor by the NCLT. The NCL had issued directions u/s.14 of the IBC. The AO claimed that under such circumstances, unless revenue was included as one of the secured creditors, the demand issued u/s.156 could not be enforced upon the assessee. 

Held that since the resolution plan has not yet been finalized, the appeal must be remanded to the AO so that the department can follow the due process as per s.156A.  The AO will then proceed before the NCLT to ensure that the department’s tax claim is appropriately dealt with under the resolution process.(AY. 2007-08)