Leave Petition Against HC Order on Tax Demand Set Aside Due to Approved Resolution Plan by AA not Entertained
- News|Blog|Insolvency and Bankruptcy Code|
- 2 Min Read
- By Taxmann
- |
- Last Updated on 10 July, 2023
Latest from Taxmann
Case Details: Tata Steel Ltd. v. State of Uttar Pradesh - [2023] 151 taxmann.com 438 (SC)
Judiciary and Counsel Details
-
- M.R. Shah & C.T. Ravikumar, JJ.
- K.V. Vishwanathan, Sr. Adv., Manik Ahluwalia, Ms Saravna Vasanta, Ms Akhila Nambiar, Rahul Sangwan, Advs. & Shravan Kumar Yammanur, AOR for the Petitioner.
Facts of the Case
In the instant case, the corporate debtor incurred huge loan liabilities and SBI, a lender bank, filed an application u/s 7 of the IBC against the corporate debtor and the same was admitted by the Adjudicating Authority (NCLT).
Later, the Resolution plan submitted by the petitioner ‘T’ was approved by the Committee of Creditors (CoC) and the Adjudicating Authority also approved the said resolution plan.
Subsequent to the approval of the resolution plan, certain tax liabilities were crystallized which resulted in recovery proceedings against the corporate debtor and Assessing Authority (Commercial Tax) passed an assessment order relating to Assessment Year 2016-17 and demand notices were issued.
Consequently, aggrieved with assessment orders, the petitioner filed a writ petition before the HC and submitted that said demands could not be recovered and unjust enrichment would not apply once the resolution plan had been sanctioned.
The HC while passing the impugned order set aside demands against the petitioner, however, left the issue of unjust enrichment open as it was neither issue before the Assessing Authority nor such disputed question of fact could be adjudicated in the writ petition.
Subsequently, the Petitioner filed an instant leave petition against the said order of the High Court. The Supreme Court observed that since the High Court left the question of unjust enrichment open and no final adjudication had taken place on the same, instant leave petitions could not be entertained and the same was to be dismissed.
Supreme Court Held
The Supreme Court held that however as and when the issue would be raised, it would be open for the petitioner to defend/oppose the same.
List of Cases Reviewed
-
- SLP dismissed against Tata Steel Ltd. v. State of UP [2023] 151 taxmann.com 437 (All.) (para 3).
Disclaimer: The content/information published on the website is only for general information of the user and shall not be construed as legal advice. While the Taxmann has exercised reasonable efforts to ensure the veracity of information/content published, Taxmann shall be under no liability in any manner whatsoever for incorrect information, if any.
Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.
The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:
- The statutory material is obtained only from the authorized and reliable sources
- All the latest developments in the judicial and legislative fields are covered
- Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
- Every content published by Taxmann is complete, accurate and lucid
- All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
- The golden rules of grammar, style and consistency are thoroughly followed
- Font and size that’s easy to read and remain consistent across all imprint and digital publications are applied
Sign Up
To subscribe to our weekly newsletter please log in/register on Taxmann.com
Latest Books
Everything on Tax and Corporate Laws of India
To subscribe to our weekly newsletter please log in/register on Taxmann.com
