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...
An NCLAT decision held that a post-reservation application seeking leave to deposit the entire claimed debt could not be ignored when it had already been taken on record, notice had been issued, and it was fixed for later consideration. Because the admission of the section 7 insolvency petition was made without addressing that pending application and the proposed full deposit, the admission order was set aside as unsustainable. The Tribunal also held that section 12A did not apply, since there was no settlement between the parties; the matter involved only a unilateral offer by the corporate debtor to deposit the claimed amount. The appeal was allowed, and payment was directed subject to the debtor's entitlement being finally determined in the pending recovery proceedings.
An NCLAT decision held that a post-reservation application seeking leave to deposit the entire claimed debt could not be ignored when it had already been taken on record, notice had been issued, and it was fixed for later consideration. Because the admission of the section 7 insolvency petition was made without addressing that pending application and the proposed full deposit, the admission order was set aside as unsustainable. The Tribunal also held that section 12A did not apply, since there was no settlement between the parties; the matter involved only a unilateral offer by the corporate debtor to deposit the claimed amount. The appeal was allowed, and payment was directed subject to the debtor's entitlement being finally determined in the pending recovery proceedings.
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