NSL Mining Resource case: Telangana HC directs Income Tax dept to issue fresh order for Rs 143 cr tax demand with NCLT plan [Read Order]

The petitioners, NSL Mining Resources India Pvt Ltd are aggrieved by the demand notice dated 20.03.2025 passed for Rs.1,43,97,93,840/- for the assessment year 2019-20 in a faceless assessment conducted under Section 147 read with Section 144B of the Income Tax Act, 1961 (the Act’).

Counsel for the petitioners submits that the Resolution Plan submitted by the Committee of Creditors was approved by the National Company Law Tribunal, Hyderabad Bench-II ( ‘the Tribunal’) on 01.02.2024. Upon approval of the Resolution Plan, all dues under the Income Tax Act, 1961 got extinguished whether admitted or not, due or contingent, asserted or not, crystallized or not from the effective date pursuant to the Resolution Plan.

Master the Latest Amendments in Income Tax Act Click here

However, in view of the issuance of the demand notice for the assessment year 2019-20 even after approval of the Resolution Plan whereby the Income tax dues got extinguished, petitioner was compelled to approach this

Court in the present writ petition.

On 19.08.2025 when the matter was taken up, learned Senior Standing Counsel for Income Tax Department, on instructions, submitted that the Assessing Officer is in the process of issuing a fresh order under Section 156A of the Act after taking note of the Resolution Plan approved by the Tribunal. The matter was adjourned on his request.

Section 156A of the Act stated that “(1) where any tax, interest, penalty, fine or any other sum in respect of which a notice of demand has been issued under section 156, is reduced as a result of an order of the Adjudicating Authority as defined in clause (1) of section 593 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the Assessing Officer shall modify the demand pavable in conformity with such order and shall thereafter serve on the assessee a notice of demand specifying the sum payable, if any, and such notice of demand shall be deemed to be a notice under section 156 and the provisions of this Act shall accordingly, apply in relation to such notice. (2) Where the order referred to in sub-section (1) is modified by the National Company Law Appellate Tribunal or the Supreme Court, as the case may be, the modified notice of demand as referred to in sub-section (1), issued by the Assessing Officer shall be revised accordingly.”

Know Practical Aspects of Tax Planning, Click Here

Senior Standing Counsel for Income Tax Department submitted that the writ petition may be disposed of with a direction upon the Assessing Officer to pass a fresh order under Section 156A of the Act after taking note of the

Resolution Plan approved by the Tribunal.

The Counsel for the petitioners prayed that the Assessing Officer may be directed to pass an order under

Section 156A of the Act within a time frame.

The Chief Justice, Aparesh Kumar Singh and Justice G.M.Mohiuddin disposed of the Writ Petition with a direction to the Assessing Officer to pass an order in view of the approval of the Resolution Plan by the learned Tribunal under Section 156A of the Act, in accordance with law, within a reasonable time, preferably eight weeks from the date of receipt of a copy of the order.

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates