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...
NCLAT addressed whether a demand notice in Form B under Rule 7(1) of the Personal Guarantor Rules, 2019, can itself constitute invocation of a guarantee for purposes of filing under Section 95 of the Code. The Tribunal held that a guarantor is a debtor who is a personal guarantor to the corporate debtor and that the financial creditor must invoke the guarantee prior to issuing a Form B demand; a pre-existing default by the guarantor must exist at the time of that notice. Absence of prior invocation meant no default and the adjudicating authority's admission was set aside.
NCLAT addressed whether a demand notice in Form B under Rule 7(1) of the Personal Guarantor Rules, 2019, can itself constitute invocation of a guarantee for purposes of filing under Section 95 of the Code. The Tribunal held that a guarantor is a debtor who is a personal guarantor to the corporate debtor and that the financial creditor must invoke the guarantee prior to issuing a Form B demand; a pre-existing default by the guarantor must exist at the time of that notice. Absence of prior invocation meant no default and the adjudicating authority's admission was set aside.
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