The Income Tax Department filed a claim of Rs. 26,06,41,424/- in the CIRP as an operational creditor. The Resolution Plan allocated only Rs. 5 lakhs to the Income Tax Department. The Income Tax Department's claim was treated as a contingent liability because an appeal against the assessment order was pending. The Income Tax Department argued that it should be considered a secured operational creditor based on the Supreme Court's judgment in 'State Tax Officer vs. Rainbow Papers Limited'. The Adjudicating Authority had approved the Resolution Plan, leading to the appeal before the NCLAT. The relevance of the pending assessment order appeal is that it impacts the nature of the claim (contingent vs. fixed) and potentially the priority of payment in the resolution plan.

The Income Tax Department filed a claim of Rs. 26,06,41,424/- in the CIRP as an operational creditor. The Resolution Plan allocated only Rs. 5 lakhs to the Income Tax Department. The Income Tax Department's claim was treated as a contingent liability because an appeal against the assessment order was pending. The Income Tax Department argued that it should be considered a secured operational creditor based on the Supreme Court's judgment in 'State Tax Officer vs. Rainbow Papers Limited'. The Adjudicating Authority had approved the Resolution Plan, leading to the appeal before the NCLAT. The relevance of the pending assessment order appeal is that it impacts the nature of the claim (contingent vs. fixed) and potentially the priority of payment in the resolution plan.