Patanjali Foods Ltd · Bombay High Court on §148: no reopening for periods before an NCLT-approved resolution plan

Can the Department issue a §148 notice for years preceding an approved resolution plan?

No. On NCLT approval of a resolution plan, all governmental claims, including income-tax dues, stand conclusively discharged; later §148 notices are invalid.

Facts in brief

• A §148 notice was issued to the assessee-company for a period preceding the closing date, after the NCLT had approved its resolution plan.

Issue before the bench

Whether income-tax claims for pre-plan periods survive NCLT approval.

Held

Following approval of a resolution plan, all claims of governmental authorities including income-tax are completely and conclusively discharged and settled.

The notice issued after approval, for a period preceding the closing date, was invalid and legally unsound.

Practitioner takeaway