Insolvency and Bankruptcy Code prevails over other tax laws

Supreme Court has reiterated that the Insolvency and Bankruptcy Code will prevail over the Income Tax Act and other statutes. The court stated so in its order in the appeal of the Commissioner of Income Tax against the judgment of the Delhi High Court in the dispute involving Monnet Ispat Energy Ltd.

While upholding the high court judgment, it said that Section 23B of the Code made it clear that it would override anything inconsistent in any other enactment. It further clarified that income tax dues do not take precedence even over secured creditors who are private persons.