# In the matter of AMW Auto Component Ltd. vs. Principal Commissioner of Income Tax (PCIT) Rajkot 1

> HC judgment dated 2025-03-11. Citation: TCN-2025-HC-00032. The case involves a petition filed by AMW Auto Component Limited against the Principal Commissioner…

- **Court:** HC
- **Order date:** 11 Mar 2025
- **Citation:** TCN-2025-HC-00032
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/amw-auto-component-ltd-vs-principal-commissioner-of-income-tax-9c6c7206

## Summary

### Background

The case involves a petition filed by AMW Auto Component Limited against the Principal Commissioner of Income Tax, Rajkot 1, challenging the legality of an impugned notice dated 13.01.2025 issued under Section 263 of the Income Tax Act, 1961. The notice sought to revise the assessment order dated 06.03.2023 for the Assessment Year 2015-16. The petitioner had undergone Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC), and a resolution plan was approved by the NCLT on 12.10.2023. The resolution plan provided for the waiver and extinguishment of all unassessed/assessed tax liabilities for the period prior to the NCLT approval date.

## Facts

AMW Auto Component Limited (the Petitioner) is a registered company engaged in manufacturing components for general engineering and automotive industries. The Petitioner filed its return of income on 30.11.2015 for the Assessment Year 2015-16, declaring a loss of Rs. 36,52,09,196/-. The case was reopened by a notice dated 31.03.2022 under Section 148 of the Income Tax Act, 1961. The assessment was completed under Section 147 read with Sections 144 and 144B of the Act on 06.03.2023, determining the total income of Rs. 42,46,54,081/-. The Petitioner was subjected to insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (IBC Code), with a Corporate Insolvency Resolution Process (CIRP) initiated by Indian Overseas Bank under Section 7 of the IBC Code,

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## Issues and analysis

### Issue 1: Whether the impugned notice issued under Section 263 of the Income Tax Act, 1961, seeking to revise …

**Ratio:** The legal principle applied is that once a resolution plan is approved under Section 31

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**Reasoning:** The court reasoned that the approval of the Resolution Plan on 12.10.2023 resulted in the

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**Interpretation:** The legal issue involves the interpretation of Section 31 of the IBC and its

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**Application:** The ratio and reasoning were applied to the specific facts of the case, where

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## Parties

- **Judges:** BHARGAV D.…; D.N.…
- **Respondents:** AMW AUTO COMPONENT…; PRINCIPAL…
- **Other parties:** Kohi…

## Timeline

- **2015-11-30 — Filing of Return of…**: The Petitioner filed the return of income for the Assessment Year 2015-16, declaring a…
- **2022-03-31 — Issuance of Notice…**: The case was reopened by the issuance of a notice dated 31.03.2022 under Section 148 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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