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Judgment
PER NAVEEN CHANDRA, ACCOUNTANT MEMBER :
The captioned appeal preferred by the Revenue is against the order of the learned Commissioner of Income Tax-29, New Delhi dated 23.12.2024 arising out of assessment order dated 28.09.2021 passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) by DCIT, Central Circle-25, New Delhi, for the Asstt. Year 2019-20.
At the very outset, the ld. Counsel for the assessee pointed out to the order of the National Company Law Tribunal [NCLT] delivered on 12.02.2026 wherein the NCLT has approved the sale of the corporate debtor as a going concern under the Insolvency proceedings. The ld. counsel for the assessee furnished a copy of the order of the NCLT in the matter of ICICI Bank Ltd vs. M/s. Punj Lloyd Limited & Adani Infra (India) Ltd V Aswini Mehra, Liquidator of Punj Lloyd Ltd dated 12.02.2026.
We have heard the submissions and have perused the relevant material on record. We find that the case of the assessee has been ordered for liquidation by the NCLT on 27.05.2022 and vide order dated 12.02.2026, NCLT New Delhi Benches has ordered for the sale of the corporate debtor, the assessee, as a going concern to Adani Infra India Ltd under the Insolvency proceedings.
In such factual matrix, we follow the ratio of the decision of the Hon'ble Supreme Court in υ. Edelweiss Asset Ghanashyam Mishra & Sons (P) Ltd. Reconstruction Co. Ltd., (2021) 9 SCC 657 which held as under:
Conclusion
102.1.That once a resolution plan is duly approved by the adjudicating authority under sub-section (1) of Section 31, the claims as provided in the resolution plan shall stand frozen and will be binding on the corporate debtor and its employees, members, creditors, including the Central Government, any State Government or any local authority, guarantors and other stakeholders. On the date of approval of resolution plan by the adjudicating authority, all such claims, which are not a part of resolution plan, shall stand extinguished and no person will be entitled to initiate or continue any proceedings in respect to a claim, which is not part of the resolution plan. 102.2. The 2019 Amendment to Section 31 of the I&B Code is clarificatory and declaratory in nature and therefore will be effective from the date on which the I&B Code has come into effect. 102.3. Consequently all the dues including the statutory dues owed to the Central Government, any State Government or any local authority, if not part of the resolution plan, shall stand extinguished and no proceedings in respect of such dues for the period prior to the date on which the adjudicating authority grants its approval under Section 31 could be continued.
We find that the Revenue has not rebutted that the NCLT has approved the sale of the assessee to Adani Infra Ltd under the IBC Law. In such facts and circumstances, and in accordance with the above decision, the appeal of the Revenue is dismissed with the liberty to file appeal afresh should it consider the same as appealable.
In the result, appeals of the Revenue is dismissed.