Initiation of reassessment proceedings under Sections 148A(b) and 148A(d) of the Income Tax Act, 1961 and issuance of the notice under Section 148 are in violation of the Section 14 of the IBC – McNally Bharat Engineering Co. Ltd. Vs. Union of India and Ors. – Calcutta High Court
The Hon’ble Calcutta High Court held that initiation of reassessment proceedings under Sections 148A(b) and 148A(d) of the Income Tax Act, 1961 and issuance of the notice under Section 148 are in violation of the Section 14 of the IBC. Furthermore, the resolution plan approved by the NCLT has overriding authority, as per Section 238 of the IBC and expressly precludes reassessment or revision proceedings for the period prior to the effective date stipulated in the plan. The respondents’ actions are in direct contravention of these provisions.