High Court of Judicature at Bombay (Nagpur Bench) · Judgments and reasoned final orders
Navdurga Advisory Pvt. Ltd., Nagpur v. Deputy/Assistant Commissioner of Income Tax, Nagpur & Ors.
Writ Petition No. 1316 of 2025 ·
Reassessment notice under section 148A(b)/(d) after IBC resolution plan approval on 22.12.2023: Court holds section 148A(d) order dated 18.04.2024 violated Ghanashyam Mishra & Sons Pvt. Ltd. v. Edelweiss ARC; petition disposed of as consequential assessment made 'nil' addition.
1. FACTS OF THE CASE
Despite the approval of a resolution plan under the IBC on 22.12.2023 and the petitioner's explicit reply bringing that approval on record, Respondent No. 1 issued a notice under section 148A(b) on 28.03.2024 and passed an order under section 148A(d) on 18.04.2024. Subsequently, the assessment was completed without making any addition to income.
2. DISCUSSION BY THE COURT
Applying Ghanashyam Mishra and Sons Pvt. Ltd. v. Edelweiss Asset Reconstruction Company Ltd. (2021 (9) SCC 657), the Division Bench held that issuing the notice/order under section 148A(d) after the resolution plan had been approved on 22.12.2023 was in clear violation of Supreme Court precedent. Recording the assurance of Revenue's counsel that instructions would be issued to the Department to take utmost care henceforth, and noting that the completed assessment resulted in no addition or loss to the petitioner, the Bench closed the petition.
3. JUDICIAL DECISION
Disposed of Writ Petition No. 1316 of 2025 recording the breach of Ghanashyam Mishra, the Department's assurance of future compliance, and the absence of any surviving prejudice.
4. OUTCOME
Assessee - Section 148A(d) order held violative of Ghanashyam Mishra; Department undertook to exercise care henceforth and writ petition disposed of as final assessment made nil addition.
5. AKHB REVIEW POINT
AKHB analysis: even where the AO intends to pass a 'nil' variation order, issuing a post-resolution-plan section 148A(d) order for a pre-CIRP period breaches the clean-slate doctrine of Ghanashyam Mishra.
Source and verification
2-page official High Court of Judicature at Bombay (Nagpur Bench) judgment PDF (20250801_HCBM040067352025.pdf).
Original PDF: 2 pages · SHA-256: 93e64979d6d890321390e7f5490439495448158471e87d6df3d26996e50771e3
Supplied source-reviewed note retained; original bytes and identity validation checked in this release. Substantive re-review is not claimed for this record.
Applies sections 148A(b) and 148A(d) of the Income-tax Act, 1961 read with the Insolvency and Bankruptcy Code, 2016. Income-tax Act, 2025 equivalence is not verified.
Full primary judgment PDF read page-by-page and verified against the AKHB Google Drive repository. Comprehensive subsequent judicial treatment has not been independently verified.
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