Madras High Court
Empee Distilleries Limited vs The Assistant Commissioner Of Income ... on 26 November, 2025
T.C.A.Nos.187, 188 and 189 of 2025
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 26.11.2025
CORAM :
THE HONOURABLE MR. MANINDRA MOHAN SHRIVASTAVA,
CHIEF JUSTICE
AND
THE HONOURABLE MR.JUSTICE G.ARUL MURUGAN
T.C.A.Nos.187, 188 and 189 of 2025
and C.M.P.Nos.23608, 23615 and 23644 of 2025
Empee Distilleries Limited
Rep. by its Authorised Signatory
Alfred Sagaya Sunder Xavier
No.72, Greams Road, Thousand Lights,
Anna Salai, Chennai - 600 006
Appellant
in all appeals
Vs
The Assistant Commissioner of Income Tax
Company Range II, Chennai
presently Corporate Circle 2(1),
Chennai 600 034
Respondent
in all appeals
PRAYER in TCA No.187 of 2025: Prayer: Appeal filed under Section
260A of the Income Tax Act, 1961 against the order of the Income Tax
Appellate Tribunal “B” Bench, Chennai, dated 16.06.2025 in
M.A.No.13/Chny/2023 in I.T.A.No.2334/Chny/2017.
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T.C.A.Nos.187, 188 and 189 of 2025
PRAYER in TCA No.188 of 2025: Prayer: Appeal filed under Section
260A of the Income Tax Act, 1961 against the order of the Income Tax
Appellate Tribunal “B” Bench, Chennai, dated 16.06.2025 in
M.A.No.14/Chny/2023 in I.T.A.No.2335/Chny/2017.
PRAYER in TCA No.189 of 2025: Prayer: Appeal filed under Section
260A of the Income Tax Act, 1961 against the order of the Income Tax
Appellate Tribunal “B” Bench, Chennai, dated 16.06.2025 in
M.A.No.15/Chny/2023 in I.T.A.No.2336/Chny/2017.
For Appellant: Mr.Karthik Lakshmanan
Arunachalam
For Respondent: Mr.T.Ravi Kumar
Senior Standing Counsel
COMMON JUDGMENT
(Order of the Court was made by the Hon'ble Chief Justice)
Heard.
2. These appeals were admitted on the following substantial
questions of law:
(1) Whether the Tribunal was conferred with
jurisdiction to decide the appeal filed by the erstwhile
management on 16.9.2017 (prior to CIRP) upon
approval of Resolution Plan by the Adjudicating
Authority (AA) i.e., National Company Law Tribunal
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T.C.A.Nos.187, 188 and 189 of 2025
(NCLT) on 20.01.2020 in the case of the appellant
company?
(2) Whether the order impugned in the appeal before
the Tribunal i.e., the order of the CIT(A) dated
28.07.2017 and the original assessment order dated
31.12.2010 passed by the Assessing Officer (AO) which
was subject matter of challenge in the appeal pending
before the CIT (A) would survive upon a Resolution
Plan being approved by the AA on 20.01.2020?
(3) Whether the jurisdiction and powers conferred on
the Tribunal ceases upon approval of a Resolution Plan
by the AA against one of the parties?
(4) Whether pending proceedings and/or demands
subject matter of such pending proceedings before the
Tribunal relating to the period prior to the approval of
the Resolution Plan by the AA not being part of the
Resolution Plan approved by the AA would survive or
would stand extinguished upon approval of the
Resolution Plan by the AA?
(5) Whether the Tribunal was justified in law in
refusing to exercise its jurisdiction under Section
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T.C.A.Nos.187, 188 and 189 of 2025
254(2) of the Income Tax Act, 1961 even though
preparation of the Resolution Plan under Insolvency
and Bankruptcy Code (IBC) was brought to its notice?
3. On the date when the appeals were admitted by this Court, it
was brought to the notice of this Court that, in view of the
authoritative pronouncement of the Hon'ble Supreme Court in the case
of Ghanashyam Mishra and Sons Private Limited, through the
Authorised Signatory v. Edelweiss Asset Reconstruction Company
Limited, through the Director and others1, upon approval of the
resolution plan, the claim, if any, of recovery of any tax from the
appellant stands extinguished and this aspect was not taken into
consideration by the Tribunal even when application seeking
rectification was filed, which eventually came to be dismissed on
16.6.2025.
4. The decision of the Hon'ble Supreme Court in the case of
Ghanashyam Mishra (supra) concludes the issue arising for
consideration on the questions posed before us. It is felicitous to
reproduce the following observations:
“102.1. That once a resolution plan is duly approved by
(2021) 9 S C C 657
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T.C.A.Nos.187, 188 and 189 of 2025
the adjudicating authority under sub-section (1) of
Section 31, the claims as provided in the resolution
plan shall stand frozen and will be binding on the
corporate debtor and its employees, members,
creditors, including the Central Government, any State
Government or any local authority, guarantors and
other stakeholders. On the date of approval of
resolution plan by the adjudicating authority, all such
claims, which are not a part of resolution plan, shall
stand extinguished and no person will be entitled to
initiate or continue any proceedings in respect to a
claim, which is not part of the resolution plan.
...
102.3. Consequently all the dues including the
statutory dues owed to the Central Government, any
State Government or any local authority, if not part of
the resolution plan, shall stand extinguished and no
proceedings in respect of such dues for the period prior
to the date on which the adjudicating authority grants
its approval under Section 31 could be continued.”
5. It is, thus, apparently clear that once the resolution plan is
approved, the claim, unless saved under the resolution plan, comes to
an end and ceases to be enforceable.
6. In order to find out whether the Revenue had submitted any
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T.C.A.Nos.187, 188 and 189 of 2025
application in the resolution proceedings before the National Company
Law Tribunal (NCLT), learned counsel for the Revenue was granted
time. All that learned counsel for the Revenue has to say before this
Court is that, though application was submitted before NCLT, the claim
was neither accepted, nor rejected.
7. It was again enquired whether against the order passed by
the NCLT any appeal was preferred before the National Company Law
Appellate Tribunal (NCLAT) or any other Court. On this aspect, learned
counsel for the Revenue submits that no further proceedings were
taken.
8. It is, thus, clear that the resolution plan, as approved by the
NCLT, has attained finality. Accordingly, in view of the decision of the
Hon'ble Supreme Court in the case of Ghanashyam Mishra (supra), all
the claims towards the tax liability also stand extinguished as against
the assessee arising from the assessment orders passed by the
Assessing Officer and confirmed by the Commissioner of Income Tax
(Appeals) and the Income Tax Appellate Tribunal pertaining to the
Assessment Years 2008-2009; 2009-2010 and 2010-2011.
9. Therefore, the questions of law framed by us are decided in
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T.C.A.Nos.187, 188 and 189 of 2025
favour of the assessee and against the revenue. It is held that it will
not be open for the revenue to institute any recovery proceedings
against the appellant in view of approval of the resolution plan by the
NCLT.
10. The appeals are, accordingly, allowed. There shall be no
order as to costs. Consequently, connected miscellaneous petitions are
closed.
(MANINDRA MOHAN SHRIVASTAVA, CJ) (G.ARUL MURUGAN,J)
26.11.2025
Index : Yes/No
Neutral Citation : Yes/No
bbr
To:
1. The Assistant Registrar
Income Tax Appellate Tribunal
Chennai Benches, Chennai.
2. The Commissioner of Income Tax (Appeals)-9
Chennai.
3. The Assistant Commissioner of Income Tax,
Company Range II, Chennai
presently Corporate Circle 2(1),
Chennai-600 034.
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T.C.A.Nos.187, 188 and 189 of 2025
THE HON'BLE CHIEF JUSTICE
AND
G.ARUL MURUGAN,J.
bbr
T.C.A.Nos.187, 188 and 189 of 2025
26.11.2025
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