Home › Tax Laws › PCIT v. Monnet Ispat and Energy Ltd 304 CTR 233/ 169 DTR 262 (SC), www.itatonline.org.Editorial: CIT v. Monnet Ispat and Energy Ltd ( 2018) 169 DTR 263/ 304 CTR 234 ( Delhi) (HC)

PCIT v. Monnet Ispat and Energy Ltd 304 CTR 233/ 169 DTR 262 (SC), www.itatonline.org.Editorial: CIT v. Monnet Ispat and Energy Ltd ( 2018) 169 DTR 263/ 304 CTR 234 ( Delhi) (HC)

S. 222 : Collection and recovery – Certificate to Tax Recovery Officer Income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons. Given S. 238 of the Insolvency and Bankruptcy Code, 2016, the Code will override anything inconsistent contained in any other enactment, including the Income-tax Act [Insolvency and Bankruptcy Code, 2016 S. 238 ]

Dismissing the SLP of the revenue the Court held that ;Officer  Income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons. Given S. 238 of the Insolvency and Bankruptcy Code, 2016, the Code will override anything inconsistent contained in any other enactment, including the Income-tax Act  . Referred ,Dena Bank vs. Bhikhabhai Prabhudas Parekh and Co. & Ors. (2000) 5 SCC 694 and its progeny, making it clear that income-tax dues, being in the nature of Crown debts, do not take precedence even over secured creditors, who are private persons. ( SLP No. 6483/2018, dt. 10.08.2018)

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