https://www.taxtmi.com/caselaws?id=400402 The court clarified that capital gain tax from asset sales in liquidation cases should not be considered a liquidation cost but should be distributed following Section 53 of The Insolvency and Bankruptcy Code, 2016. Secured creditors relinquishing security interest under Section 52(a) were concerned about potential disadvantages if capital gains tax was treated as a liquidation cost. The court emphasized the priority of debts owed to secured creditors and workmen over government dues, ruling that the IBC prevails over conflicting provisions of the Income Tax Act. Ultimately, the judgment concluded that tax liabilities should be distributed in accordance with the IBC, with capital gain tax not categorized as a liquidation cost. en-us Mon, 31 Aug 2020 00:00:00 +0530 Fri, 06 Nov 2020 09:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400402 The court clarified that capital gain tax from asset sales in liquidation cases should not be considered a liquidation cost but should be distributed following Section 53 of The Insolvency and Bankruptcy Code, 2016. Secured creditors relinquishing security interest under Section 52(a) were concerned about potential disadvantages if capital gains tax was treated as a liquidation cost. The court emphasized the priority of debts owed to secured creditors and workmen over government dues, ruling that the IBC prevails over conflicting provisions of the Income Tax Act. Ultimately, the judgment concluded that tax liabilities should be distributed in accordance with the IBC, with capital gain tax not categorized as a liquidation cost. Case-Laws Insolvency and Bankruptcy Mon, 31 Aug 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400402