Claim of Income Tax dues can’t be excessive than the Resolution Plan approved by NCLT: ITAT [Read Order]

The Income Tax Appellate Tribunal ( ITAT ) Hyderabad bench has held that the claim of Income tax dues can’t be more excessive than the resolution plan approved by NCLT.

The assessee filed its return of income declaring a loss of Rs.33,19,28,249/-, Short Term Capital Gains of Rs.3,48,886/- and Long-Term Capital Gains of Rs.20,71,49,940/-.  Finally, the Assessing Officer completed the assessment determining the total income of the assessee at Rs.74,58,05,465/-, wherein he determined the Long-Term Capital Gains at Rs.107,69,25,428/-. On appeal before the CIT(A), deleted the addition made by the AO.

The assessee stated that the Corporate Insolvency Resolution process took place and the NCLT, Amaravati Bench vide order dt.25-06-2021 accepted the resolution plan and stated that the claim of government dues a sum of Rs.159.37 Crores was admitted, but only a sum of Rs.0.22 Crores was provided. The assessee contended that it was well stated that the un-claimed liabilities of the corporate debtor (the assessee) as on such date, stood extinguished and no creditors of the erstwhile corporate debtor can claim anything other than the liabilities referred to in the plan. 

Shri Rama Kanta panda, AM and Shri Laliet Kumar, Judicial Member held that “the Revenue is bound by the resolution plan as accepted by the NCLT and not entitled to anything more than what is provided therein.”

The Tribunal found that the amount provided under the resolution plan was only Rs.22 Lakhs as against the claim of the Revenue to the tune of Rs.189.91 Crores and thereby the assessee or Revenue cannot have any grievance in disposing of these appeals in tune with the orders of the NCLT. The appeal filed by the Revenue was partly allowed and the Cross Objections filed by the assessee got dismissed.

The assessee was represented by Shri P.Vinod and the revenue was represented by Shri Rajendra Kumar.

To Read the full text of the Order CLICK HERE

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