Assessee-company is\u00a0 undergoing Corporate Insolvency Resolution Process (CIRP).A resolution plan was approved by NCLT. As per resolution plan, value of all dues including income tax dues was treated as nil and was deemed to have been fully discharged and settled for any period prior to closing date. After resolution plan had been given effect to, department initiated reassessment proceedings against assessee by issuing a notice under section 148.On facts, issue of notice under section 148 to assessee company after approval of resolution plan for a period prior to closing date was invalid and bad in law, having been issued contrary to provisions of Code and Resolution Plan. Court also held that the\u00a0 Assessing Officer should modify demand giving effect to order of adjudicating Authority in Corporate Insolvency process under Code. Court also observed that\u00a0 Revenue may take whatever steps available to take action, if any, against ex-promoter and other third parties in accordance with law. Accordingly\u00a0 notices, subsequent proceedings of reassessment and penalty and consequent orders are reversed and set aside.\u00a0\u00a0 Referred, Ghanashyam Mishra and Sons Pvt Ltd v.Edelweiss Asset Resolution Co Ltd\u00a0 (2021) 227 Comp Cas 251 (SC) \/ (2021) 91 GSTR 28 (SC)\/ (2021) 9SCC 657. \u00a0(AY. 2013-14)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 148 : Reassessment-Notice-Protective assessment-Issuance of notice after initiation of corporate Insolvency resolution process and after initiation of corporate insolvency resolution process and giving effect to resolution plan-Notices and subsequent proceedings of reassessment and penalty and consequential orders are reversed and set aside-Assessing Officer should modify demand giving effect to order of adjudicating Authority in Corporate Insolvency process under Code-Revenue may take whatever steps available to take action, if any, against ex-promoter and other third parties in accordance with law-Notices, subsequent proceedings of reassessment and penalty and consequent orders are reversed and set aside. [S. 133(6), 144, 147, 156A, 271(1)(c), 274, Insolvency and Bankruptcy Code, 2016, S. 31, 238, Art. 226]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-53072","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dO0","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53072","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=53072"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53072\/revisions"}],"predecessor-version":[{"id":53073,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/53072\/revisions\/53073"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=53072"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=53072"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=53072"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}