https://www.taxtmi.com/caselaws?id=785600 Clarifies standards for treating inventory write-offs as fraudulent or wrongful trading: for liability under Section 66(1) the transaction must be knowingly executed with dishonest intent to defraud creditors, and for wrongful trading liability only directors/partners can be fixed if they knew or ought to have concluded there was no reasonable prospect of avoiding insolvency and failed to take due diligence to minimize creditor loss; such findings must be proved on a preponderance of probability based on transaction audit, stock records, and unit visit evidence, with paper write-offs unsupported by physical stock susceptible to being treated as conduit for contribution to corporate assets. en-us Thu, 22 Jan 2026 00:00:00 +0530 Wed, 28 Jan 2026 07:26:17 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=785600 Clarifies standards for treating inventory write-offs as fraudulent or wrongful trading: for liability under Section 66(1) the transaction must be knowingly executed with dishonest intent to defraud creditors, and for wrongful trading liability only directors/partners can be fixed if they knew or ought to have concluded there was no reasonable prospect of avoiding insolvency and failed to take due diligence to minimize creditor loss; such findings must be proved on a preponderance of probability based on transaction audit, stock records, and unit visit evidence, with paper write-offs unsupported by physical stock susceptible to being treated as conduit for contribution to corporate assets. Case-Laws IBC Thu, 22 Jan 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=785600