The Tribunal affirmed the disallowance of expenses. On appeal the assessee contended that an application was filed by the resolution professional of the corporate debtor before NCLT, dt. 18th Feb., 2019 seeking an approval of the successful resolution plan under S. 30(6) of the Insolvency & Bankruptcy Code. The said resolution plan was approved by the NCLT. Therefore the resolution applicant cannot be faced with undecided claims. Court held that once the plan is approved the resolution applicant starts on a clean slate and it cannot be faced with surprise claims. Accordingly the assessment order which is the subject matter of the appeal cannot be enforced any longer, nor the consequential proceedings which arose from the assessment order. Assessment order passed and all proceedings arising therefrom are held to have been permanently extinguished. Followed Committee of Creditors of Essar Steel Ltd v. Satish Kumar Gupta. (2020) SCC 531 and Ghanashyam Mishra & Sons (P) Ltd. v. Edelweiss Asset Reconstruction Co. Ltd. (2021) 9 SCC 657. (AY. 1995-96)
Minosha India Ltd. v. CIT (2023) 331 CTR 470 /223 DTR 398 (Cal)(HC)
S. 143(3) : Assessment-Moratorium under Insolvency & Bankruptcy Code-Once the plan is approved under the Insolvency & Bankruptcy Code the resolution applicant starts on a clean slate and it cannot be faced with surprise claims, therefore, the assessment order which is the subject matter of the appeal cannot be enforced any longer, nor the consequential proceedings which arose from the assessment order. [S. 37(1), Insolvency & Bankruptcy Code, 2016, S.14, 30(6),31, 260A]