Indian Courts Restrict Revenue Tax Enforcement in Reassessment and Insolvency Cases

The Chennai Income Tax Appellate Tribunal (ITAT) set aside a reassessment order because the Assessing Officer failed to make any addition on the specific reason for reopening the case, which concerned alleged suppression of professional fees. Instead, the officer added a disallowance of interest expenditure unrelated to the original issue, leading the tribunal to quash the reassessment.

Separately, the Bombay High Court held that the Income Tax Department cannot revive or enforce a tax demand after a corporate resolution plan has been approved by the National Company Law Tribunal (NCLT). The court ruled that any tax claim must be presented and considered during the insolvency proceedings; otherwise, it remains unenforceable once the resolution plan is finalized.