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...
Section 65 of the IBC permits termination of CIRP where initiation is shown to be fraudulent or malicious, but only on specific pleadings and supporting material. The NCLAT held that the provision can be invoked even after a Section 7 admission order attains finality, yet it cannot be used to reopen the earlier finding on debt and default. On the facts, the bank relied on the same assignment-based contention already considered in the Section 7 proceedings, and the record did not show collusion, fraud or malicious intent. The forensic audit direction was also set aside because no such relief had been sought and it was unnecessary once Section 65 relief was refused.
Section 65 of the IBC permits termination of CIRP where initiation is shown to be fraudulent or malicious, but only on specific pleadings and supporting material. The NCLAT held that the provision can be invoked even after a Section 7 admission order attains finality, yet it cannot be used to reopen the earlier finding on debt and default. On the facts, the bank relied on the same assignment-based contention already considered in the Section 7 proceedings, and the record did not show collusion, fraud or malicious intent. The forensic audit direction was also set aside because no such relief had been sought and it was unnecessary once Section 65 relief was refused.
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