Tax assessments, company disputes and debt recovery are separate areas of law, but they often meet in the same business: a notice from the department, a dispute between shareholders, an unpaid invoice that becomes an insolvency application. The firm's advocates work as an income tax lawyer in Panchkula and Chandigarh, and also appear in company law matters before the National Company Law Tribunal (NCLT), Chandigarh Bench, and recovery matters before the Debts Recovery Tribunal (DRT), Chandigarh. Appeals from these forums go to the Punjab & Haryana High Court or the appellate tribunals, and the firm appears there as well.
Note on the Income-tax Act, 2025
The Income-tax Act, 2025 replaces the Income-tax Act, 1961 for tax years beginning on or after 1 April 2026. Assessments, appeals and prosecutions that relate to earlier assessment years continue to be governed by the 1961 Act, with the savings provisions of the new Act preserving them. Section numbers in this page are those of the 1961 Act, because most matters now in litigation arise under it. The 2025 Act renumbers the provisions, so the correct section for a given year has to be confirmed.
Income tax litigation
An income tax dispute usually moves through a fixed ladder of forums.
- Assessment. Scrutiny, reassessment after notice under Sections 147 to 151, and orders under Section 143(3) or 144. Most communications are now made through the e-filing portal, and notices must be answered within the dates stated.
- First appeal. An appeal to the Commissioner of Income-tax (Appeals) under Section 246A, generally within 30 days of the order under Section 249.
- Second appeal. An appeal to the Income Tax Appellate Tribunal under Section 253, generally within 60 days. Appeals from this region are heard at the ITAT Chandigarh Bench, the last forum for findings of fact.
- High Court. An appeal under Section 260A lies only on a substantial question of law, generally within 120 days of the Tribunal's order.
Rectification (Section 154), revision (Sections 263 and 264), penalty proceedings and stay of demand are handled alongside. Writ petitions before the High Court are used where notices are challenged for want of jurisdiction or for breach of the statutory procedure.
Income tax prosecution
Chapter XXII of the 1961 Act creates offences, including wilful attempt to evade tax (Section 276C), failure to furnish a return (Section 276CC), failure to pay tax deducted at source (Section 276B) and false statements in verification (Section 277). Prosecution generally requires sanction by the competent income tax authority under Section 279 and is tried by the court designated for the purpose. Defence of an income tax prosecution involves the sanction, the proof of wilfulness or mens rea, limitation, and the outcome of the underlying assessment appeal. Offences can be compounded under Section 279(2) in accordance with the guidelines issued by the Central Board of Direct Taxes, and an application for compounding is a separate procedure with its own eligibility conditions.
Company law and NCLT Chandigarh
The NCLT Chandigarh Bench hears company and insolvency matters from the region. The matters taken up by an NCLT Chandigarh lawyer include the following.
- Oppression and mismanagement. A petition under Sections 241 and 242 of the Companies Act, 2013 by members who allege that the company's affairs are conducted in a manner prejudicial to them or to the company. Section 244 sets the eligibility thresholds, and the Tribunal may waive them. Appeals lie to the National Company Law Appellate Tribunal (NCLAT) under Section 421.
- Other company law matters. Rectification of the register, directors' disputes, schemes of arrangement and winding up.
Insolvency under the IBC
The Insolvency and Bankruptcy Code, 2016 provides three routes to start a corporate insolvency resolution process, each with a minimum default threshold set by notification.
- Section 7: application by a financial creditor, where the existence of a debt and a default is the principal question (Innoventive Industries Ltd. v. ICICI Bank, 2017).
- Section 9: application by an operational creditor, preceded by a demand notice under Section 8, to which the debtor may reply within ten days, including by raising a pre-existing dispute (Mobilox Innovations Pvt. Ltd. v. Kirusa Software Pvt. Ltd., 2017).
- Section 10: application by the corporate debtor itself.
On admission, a moratorium under Section 14 stops suits and recovery actions against the corporate debtor and an interim resolution professional takes over. Appeals against IBC orders lie to the NCLAT under Section 61, and from there to the Supreme Court. A notice under Section 8 needs a careful, timely reply.
GST disputes
For businesses, GST notices under Sections 73 and 74 of the Central Goods and Services Tax Act, 2017 (and Section 74A for later periods) are answered in show-cause proceedings. Appeal lies to the Appellate Authority under Section 107, generally within three months, and then to the GST Appellate Tribunal. Writs before the High Court are considered in cases of jurisdictional defect.
Banking recovery: DRT and SARFAESI
Banks recover large dues through the Recovery of Debts and Bankruptcy Act, 1993 before the DRT, Chandigarh, and by enforcing security under the SARFAESI Act, 2002. A borrower or guarantor served with a demand notice under Section 13(2) of SARFAESI can reply with objections, and after possession measures an application under Section 17 lies to the DRT, generally within 45 days. An appeal against the DRT's order goes to the Debts Recovery Appellate Tribunal, subject to the pre-deposit under Section 18. The firm appears for borrowers, guarantors and, in suitable matters, creditors. Contractual disputes with a financial dimension may also go to arbitration.
Frequently asked questions
Which Tribunal hears income tax appeals from Panchkula?
The first appeal is to the Commissioner of Income-tax (Appeals). A further appeal lies to the Income Tax Appellate Tribunal, and for this region the ITAT Chandigarh Bench is the forum. Appeals on substantial questions of law then go to the Punjab & Haryana High Court under Section 260A.
Does the Income-tax Act, 2025 apply to old assessment years?
The 2025 Act replaces the 1961 Act from 1 April 2026. Proceedings for earlier years continue under the 1961 Act, so appeals and prosecutions for those years are governed by its provisions. The savings clause and the particular year should be checked.
Can an income tax prosecution be compounded?
Many offences under Chapter XXII can be compounded under Section 279(2) on an application, in accordance with the CBDT's compounding guidelines. Eligibility depends on the offence, the stage of the case and the conditions in the guidelines in force.
What should be done on receiving a demand notice under Section 8 of the IBC?
The notice gives the corporate debtor ten days to reply, either by paying the amount or by showing that the debt is disputed or that a notice of dispute was already sent. The reply and supporting documents are examined against the invoices and the contract.
What is the time limit to challenge a SARFAESI action?
An application under Section 17 of the SARFAESI Act is generally to be filed before the DRT within 45 days of the measure taken under Section 13(4). The specific facts decide the date from which time runs.
The office address and telephone numbers are on the contact page.
This page is general information, not legal advice. Laws and procedures change; the position in your matter depends on its facts.