Income Tax dues are Government dues and is Secured Creditor under IBC – Principal Commissioner of Income Tax Vs. M/s Assam Company India Ltd. – NCLAT New Delhi
In this case, the Appellants, Principal Commissioner of Income Tax placed demand of Income Tax for the Assessment Year 2013-14 & Assessment Year 2014-15 totaling to Rs. 16,20,25,953/- before the Resolution Professional and the claim was filed by Income Tax Department. The Appellants received as a full and final payment totalling to Rs. 1,20,23,691 which is not even 15% of the outstanding demand.
NCLAT held that the judgment passed by the Hon’ble Supreme Court in the case of State Tax Officer (1) Vs. Rainbow Papers Limited (2022) ibclaw.in 107 SC, the dues of the Appellants are ‘Government dues’ and they are Secured Creditors. Thus, the impugned order dated 10.02.2021 passed by the Adjudicating Authority is hereby set aside and the matter is remitted back to the Adjudicating Authority.
