# In the matter of M Tech Developers Pvt. Ltd. vs. National Faceless Assessment Centre, Delhi & Anr.

> HC judgment dated 2024-04-15. Citation: TCN-2024-HC-00100. The case involves a writ petition challenging notices issued under Section 144B of the Income Tax…

- **Court:** HC
- **Order date:** 15 Apr 2024
- **Citation:** TCN-2024-HC-00100
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/high-courts-new-delhi/m-tech-developers-pvt-ltd-vs-national-faceless-assessment-centre-delhi-anr-4b9e41e2

## Summary

### Background

The case involves a writ petition challenging notices issued under Section 144B of the Income Tax Act, 1961, pertaining to Assessment Year 2021-22, along with consequential notices under Sections 143(2) and 142(1) of the same Act. The petitioner contends that once a Resolution Plan is accepted under the Insolvency and Bankruptcy Code (IBC), Section 31 of the IBC bars the reopening or assessment of income for any period prior to the plan's approval. The proceedings before the National Company Law Tribunal (NCLT) commenced upon filing a petition under Section 7 of the IBC, which was admitted on 12 November 2020, leading to a moratorium. The Resolution Professional informed the Income Tax authorities about the NCLT proceedings. The petitioner furnished its Return of

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## Facts

M Tech Developers Pvt. Ltd. filed a writ petition challenging notices issued under Section 144B of the Income Tax Act, 1961, pertaining to Assessment Year 2021-22, along with consequential notices under Sections 143(2) and 142(1) of the same Act. The petitioner argued that the notices were issued after the approval of a Resolution Plan under the Insolvency and Bankruptcy Code (IBC), which, according to Section 31 of the IBC, bars any claims pertaining to a period prior to the approval of the Resolution Plan. The Corporate Insolvency Resolution Process (CIRP) was initiated by Mr. Debashish Majumdar under Section 7 of the IBC, and the petition was admitted on 12 November 2020, leading to a moratorium. The Resolution Professional (RP) informed the Income Tax authorities

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## Issues and analysis

### Issue 1: Whether Section 31 of the Insolvency and Bankruptcy Code, 2016 bars the Income Tax Department from …

**Ratio:** Section 31 of the IBC provides that once a resolution plan is approved by the Committee

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**Reasoning:** The court reasoned that allowing the Income Tax Department to initiate assessment

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**Interpretation:** The court interpreted Section 31 of the IBC to mean that all claims against the

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**Application:** The court applied the ratio and reasoning to the facts of the case and held

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## Parties

- **Judges:** YASHWANT…; Purushaindra…
- **Respondents:** M TECH DEVELOPERS…; NATIONAL FACELESS…
- **Other parties:** Kohi…

## Timeline

- **2020-11-12 — Petition Ad…**: Petition under Section 7 of the IBC filed by Mr. Debashish Majumdar was admitted by NCLT,…
- **2020-11-23 — RP Informs IT…**: The Resolution Professional informed the Income Tax authorities of the pendency of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(6) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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