Transfer-pricing treatment of ITeS margins excludes pass-through tax recoveries and separate delayed-receivables interest after working-capital adjust...
Capacity-utilisation adjustments under TNMM can neutralise substantiated COVID-related idle costs where underutilisation materially affects profitabil...
TNMM functional comparability requires excluding rice manufacturers from a pure Basmati rice trader's benchmark and recognising operating export recei...
Working-capital adjustment subsumes delayed-receivable effects in TNMM benchmarking of captive software-development services, avoiding separate notion...
Transfer-pricing comparability requires exclusion of financially illogical super-profit comparables and correction of unsupported annual-report and ma...
Charitable character assessment preserves Section 80G approval despite inclusive spiritual teachings and incidental religious expenditure within the s...
Penalty proceedings for cash-loan acceptance require assessment proceedings and recorded Assessing Officer satisfaction; absent these, the proceedings...
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The Appellate Tribunal held that personal guarantors who have not made any payment towards discharge of their guarantee cannot be considered financial creditors of the corporate debtor, nor can they be allocated voting shares in the corporate insolvency resolution process. The statutory scheme under the Insolvency and Bankruptcy Code requires that for a transaction to qualify as a financial debt, in addition to establishing a guarantee or indemnity, a liability in respect of the guarantee must also be established. Mere issuance of a guarantee without any actual payment does not create a financial debt. The Tribunal upheld the Adjudicating Authority's order excluding the appellants, who were personal guarantors but had not made any payments, from the committee of creditors and affirmed that there was no violation of natural justice. The appeal was dismissed.
The Appellate Tribunal held that personal guarantors who have not made any payment towards discharge of their guarantee cannot be considered financial creditors of the corporate debtor, nor can they be allocated voting shares in the corporate insolvency resolution process. The statutory scheme under the Insolvency and Bankruptcy Code requires that for a transaction to qualify as a financial debt, in addition to establishing a guarantee or indemnity, a liability in respect of the guarantee must also be established. Mere issuance of a guarantee without any actual payment does not create a financial debt. The Tribunal upheld the Adjudicating Authority's order excluding the appellants, who were personal guarantors but had not made any payments, from the committee of creditors and affirmed that there was no violation of natural justice. The appeal was dismissed.
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