Gujarat High Court
Mangalam Global Enterprise Limited vs The Assistant Commissioner Of Income ... on 11 November, 2025
Author: A.S. Supehia
Bench: A.S. Supehia
NEUTRAL CITATION
C/SCA/10321/2023 ORDER DATED: 11/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 10321 of 2023
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MANGALAM GLOBAL ENTERPRISE LIMITED
Versus
THE ASSISTANT COMMISSIONER OF INCOME TAX, ANAND CIRCLE,
ANAND
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Appearance:
MR TUSHAR HEMANI SENIOR COUNSEL with MS VAIBHAVI K
PARIKH(3238) for the Petitioner(s) No. 1
MR RUTVIJ R PATEL(10615) for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA
and
HONOURABLE MR. JUSTICE PRANAV TRIVEDI
Date : 11/11/2025
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)
1. RULE. Learned advocate Mr. Rutvij R. Patel waives service of notice of rule on behalf of the respondent.
2. At the outset, learned Senior Advocate Mr. Tushar Hemani appearing for the petitioner has invited attention of this Court to the order dated 21.06.2022 passed by the Coordinate Bench of this Court in Special Civil Application No. 5859 of 2022 and allied matters, wherein reliance was placed to the decision of the Supreme Court in the case of Ghanashyam Mishra and Sons (P.) Ltd. Vs. Edelweiss Asset Reconstruction Co. in [2021] 126 taxmann.com 132(SC) as well as the decision rendered by Division Bench of Bombay High Court in the case of Murli Industries Limited Vs. Assistant Commissioner of Income Tax and ors., 2021 SCC OnLine Bom 6187. It is submitted that in view of the aforementioned citations, the issue raised in the present writ petition is no longer res integra, as the notice issued by the respondent dated 29.03.2023 passed under Section 148 of the Income Tax Act,1961 (for short 'the Act') and the impugned order dated 29.03.2023 under Section 148A(d) of the Act for the assessment year 2019-20, would pale into insignificance in view Page 1 of 3 Uploaded by Radhika Srinivasan(HCD0042) on Wed Nov 12 2025 Downloaded on : Wed Nov 12 21:50:51 IST 2025 NEUTRAL CITATION C/SCA/10321/2023 ORDER DATED: 11/11/2025 undefined of the approval of the Resolution Plan passed by the National Company Law Tribunal ( for short 'NCLT'), Ahmedabad Bench vide judgment and order dated 20.09.2022. It is submitted that though the respondent - Income Tax Department had challenged the aforesaid approval of Resolution Plan by filing an appeal, the same has not succeeded as the appeal has been rejected.
2.1 It is thus submitted that once the Resolution Plan has been approved by the adjudicating authorities, the liabilities of the respondent department gets extinguished. Thus, it is urged that in view of the settled legal precedence, the writ petition may be allowed by setting aside the notice as well as the impugned order.
3. Per Contra learned advocate Mr. Rutvij Patel appearing for the respondent department has opposed the writ petition and has submitted that the writ petition may not be entertained as both the impugned notice as well as the order have been precisely passed by the respondent department. It is submitted that the petitioner - Company had not filed any return of income for the financial year 2019-20, despite having income exceeding Rs.309,43,77,092/-, thereby suggesting escapement of income for assessment year 2019-20, within the meaning of Section 147 of the Act. He has submitted that the order under Section 148A(d) of the Act and the notice under Section 148 of the Act, which were issued on the basis of credible information available with the department. Thus, it is urged that the writ petition may not be entertained.
4. We have heard the learned advocates appearing for the respective parties, at length.
5. The aforementioned facts about the approval of the Resolution Plan dated 15.06.2022 passed by the NCLT, Ahmedabad Bench, vide judgment and order dated 20.09.2022 is not in dispute. The Resolution Page 2 of 3 Uploaded by Radhika Srinivasan(HCD0042) on Wed Nov 12 2025 Downloaded on : Wed Nov 12 21:50:51 IST 2025 NEUTRAL CITATION C/SCA/10321/2023 ORDER DATED: 11/11/2025 undefined Plan takes care of the liabilities under the income tax and hence as per the settled legal precedence, all the liabilities, assessed and unassessed under the Income Tax Act, gets extinguished. We may at this stage, refer to the observations made by the Coordinate Bench in the judgment dated 08.07.2025 in Special Civil Application No. 5221 of 2025 in case of AMW Auto Component Ltd. Vs. Assistant Commissioner of Income Tax.
"8. From the perusal of the above it is evident that all tax liabilities, assessed and unassessed under the Income Tax Act, 1961 "shall stand waived and extinguished".
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11. Therefore, applying the decisions of the Hon'ble Apex Court to the facts of the present case, it is clear that on the complete extinguishment of the tax liabilities of the Corporate Debtor upon the approval of the Resolution Plan on 31.03.2025, there could be no occasion whatsoever for the respondents to issue the impugned notice under Section 148 of the Income Tax Act on 31.03.2025. In such view of the matter, the merits of the impugned notice under Section 148 of the Act have become academic and need not be ventured into by this Court. Resultantly, the petition succeeds and the impugned notice dated 31.03.2025 under Section 148 of the Income Tax Act is hereby quashed and set aside. Rule is made absolute to the aforesaid extent. No order as to costs."
6. Thus, in view of the settled legal precedence, the writ petition succeeds. The impugned notice as well the order dated 29.03.2023 passed under Section 148 and 148A(d) of the Act, for the assessment year 2019- 20 are hereby quashed and set aside. Rule is made absolute.
(A. S. SUPEHIA, J) (PRANAV TRIVEDI,J) Radhika / 42 Page 3 of 3 Uploaded by Radhika Srinivasan(HCD0042) on Wed Nov 12 2025 Downloaded on : Wed Nov 12 21:50:51 IST 2025