Penalty Orders Under Section 270A Of Income Tax Act Not Sustainable After Approval Of Resolution Plan Under Section 31 Of IBC: Gujarat High Court

In a landmark judgment, the Gujarat High Court ruled that once a Resolution Plan is approved under Section 31 of the Insolvency and Bankruptcy Code, 2016, all claims including those related to tax penalties under the Income Tax Act, 1961 stand extinguished. This was observed in the case of Technovaa Plastic Industries Pvt. Ltd. where the court quashed penalty orders issued under Section 270A, Section 271(1)(c), and Section 271AAC(1) of…