# In the matter of Murli Industries Limited Vs. Assistant Commissioner of Income Tax & Ors. W.P. No. 2948 of 2021

> HC judgment dated 2021-12-23. Citation: TCN-2021-HC-00002. Murli Industries Limited filed writ petitions challenging notices issued by the Income Tax…

- **Court:** HC
- **Order date:** 23 Dec 2021
- **Citation:** TCN-2021-HC-00002
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/gauhati-high-court-kohima/murli-industries-limited-vs-assistant-commissioner-of-income-tax-ors-wp-no-2948-c7bf2566

## Summary

### Background

Murli Industries Limited filed writ petitions challenging notices issued by the Income Tax Department under Section 148 of the Income Tax Act, 1961, seeking to reopen the concluded assessment for the assessment year 2014-15. The petitioner argued that these notices were issued after the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC), making them unsustainable. The Income Tax Department contended that the claims were not part of the Resolution Plan as they were not crystallized at the time of approval and that the notice was issued because income chargeable to tax had escaped assessment.

## Facts

Murli Industries Limited, the petitioner, is a company registered under the Companies Act, 1956, engaged in manufacturing and selling cement. The petitioner filed its income tax return for the assessment year 2014-15, declaring a loss. The Income Tax Department selected the petitioner's case for scrutiny and passed an order under Section 143(3) read with Section 144 of the Income Tax Act, 1961. Subsequently, Edelweiss Asset Reconstruction Company Limited initiated Corporate Insolvency Resolution Process (CIRP) against the petitioner under Section 7 of the Insolvency and Bankruptcy Code (IBC). The National Company Law Tribunal (NCLT) admitted the application and appointed an Interim Resolution Professional (IRP), who was later appointed as the Resolution Professional

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## Issues and analysis

### Issue 1: Whether the Authorities of the Income Tax Department can issue notice under Section 148 of the …

**Ratio:** Once a resolution plan is duly approved by the Adjudicating Authority under sub-section

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**Reasoning:** The court relied on the Supreme Court's decision in Ghanashyam Mishra's case, which

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**Interpretation:** The court interpreted Section 31 of the IBC, as amended in 2019, to be

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**Application:** In this case, the Income Tax Department had raised claims before the RP but

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## Parties

- **Judges:** Sunil B.…; Anil L. P…
- **Appellants:** Murli Industries…
- **Respondents:** Assistant…

## Timeline

- **2014-09-29 — Filing of Income Tax…**: Murli Industries Limited filed its return of income for the assessment year 2014-15,…
- **2016-12-27 — Order under Section…**: The Income Tax Authorities passed an order under Section 143(3) read with Section 144 of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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