Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Classification of imported goods as electronic cigarette versus tobacco product reversed for lack of proof; order set aside for jurisdictional overrea...
Liability of suspended management to contribute to the corporate debtor's assets under Section 66 IBC was upheld on findings of fraudulent/wrongful trading based on unexplained cash withdrawals and related-party payments evidenced from bank statements. The RP's decision to commission a transaction audit was held justified because statutory records and asset possession were withheld, leaving no alternative evidentiary source. Once the RP established prima facie suspect transactions, the burden shifted to the directors to prove they were in the ordinary course of business; failure to produce reliable supporting documentation disentitled them from benefiting from evidentiary gaps created by their own non-cooperation. The appellate challenge to the contribution direction was rejected and the appeal was dismissed. - NCLAT
Liability of suspended management to contribute to the corporate debtor's assets under Section 66 IBC was upheld on findings of fraudulent/wrongful trading based on unexplained cash withdrawals and related-party payments evidenced from bank statements. The RP's decision to commission a transaction audit was held justified because statutory records and asset possession were withheld, leaving no alternative evidentiary source. Once the RP established prima facie suspect transactions, the burden shifted to the directors to prove they were in the ordinary course of business; failure to produce reliable supporting documentation disentitled them from benefiting from evidentiary gaps created by their own non-cooperation. The appellate challenge to the contribution direction was rejected and the appeal was dismissed. - NCLAT
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