Dishnet Wireless Ltd (Madras HC) (W.P. Nos. 34668, 34671, 34649, 34654, 34657 & 34664 of 2018)

Facts:

 1. A notice under Section 148 of the Income Tax Act for reopening of old cases had been issued to the assessee before the Resolution Plan was submitted by it under the Insolvency and Bankruptcy Code, and the assessee’s objections against reopening of the assessment had been overruled by a speaking order.

 2. The assessee contended that the Government is a “corporate debtor” and hence, it cannot proceed with the reassessment proceedings since the Corporation Insolvency Resolution Plan had been approved by the NCLT

 3. The Income Tax Department submitted that there is no bar under the law that inhibits the income tax authorities’ power to continue with the reassessment proceedings initiated under Section 148 of the Income Tax Act.

The Hon Madras HC held as below:

 1. The Resolution Plan submitted by the Insolvency Resolution Professional on behalf of the assessee had not contemplated any concession from the Income Tax Department, despite the fact that notices under Section 148 of the Income Tax Act had already been issued to the assessee before the submission of the said Resolution Plan.

 2. The reassessment proceedings under the Income Tax Act had not been crystallized at the stage of approval of the said Resolution Plan.

 3. Therefore, the Income Tax Department cannot be precluded from reopening the assessment under the Income Tax Act.