# In the matter of Gandhamardhan Sponge Industries Pvt. Ltd.

> NCLT judgment dated 2024-09-17. Citation: TCN-2024-NCLT-00588. The case involves an application filed by Gandhamardhan Sponge Industries Pvt. Ltd., the…

- **Court:** NCLT
- **Order date:** 17 Sept 2024
- **Citation:** TCN-2024-NCLT-00588
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gandhamardhan-sponge-industries-pvt-ltd-4609b916

## Summary

### Background

The case involves an application filed by Gandhamardhan Sponge Industries Pvt. Ltd., the Successful Resolution Applicant (SRA) and Corporate Debtor, against the Deputy Commissioner of Income Tax Circle One, Cuttack, regarding income tax demands. The SRA sought a declaration that an income tax notice dated 25.01.2024 is null and void, the quashing of a demand notice dated 25.01.2024 and order dated 28.03.2024, and a declaration that the applicant is not liable for past dues accrued before the resolution plan approval date of 25.03.2021. The respondent, Income Tax Department, argued that the liability for Assessment Year 2019-2020 was not covered by the resolution plan approval order.

## Facts

The Corporate Insolvency Resolution Process (CIRP) of Gandhamardhan Sponge Industries Pvt. Ltd. commenced on 04.10.2019. A public announcement was made on 05.10.2019. The Income Tax Department submitted a claim of Rs. 55,46,41,862 on 18.08.2020. The Adjudicating Authority approved the resolution plan submitted by Bhuwalka Developments Pvt. Ltd. on 25.03.2021. The Successful Resolution Applicant (SRA) paid Rs. 4,43,72,000 to the Income Tax Department on 24.03.2022. The Income Tax Department issued a notice under Section 148A(b) of the Income Tax Act, 1961, on 25.01.2024, which was replied to by the Applicant on 03.02.2024. The Income Tax Department passed an impugned order on 20.03.2024. The applicant filed an application seeking to declare the income tax notice dated

…

## Issues and analysis

### Issue 1: Whether the income tax notice dated 25.01.2024 is valid and enforceable against the Successful …

**Ratio:** The principle established by the Supreme Court in Ghanashyam Mishra & Sons Pvt. Ltd.

…

**Reasoning:** The court reasoned that the corporate debtor emerged from the insolvency resolution

…

**Interpretation:** This issue involves interpreting the effect of an approved resolution plan on

…

**Application:** The court applied the ratio to the fact that the income tax notice pertained to

…

## Parties

- **Judges:** BIDISHA BA…; D. Ar…
- **Respondents:** Gandhamardhan…; Income tax…

## Timeline

- **2019-10-04 — CIRP Commen…**: Corporate Insolvency Resolution Process…
- **2019-10-05 — Public Annou…**: Public Announcement of…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/gandhamardhan-sponge-industries-pvt-ltd-4609b916