Clarification regarding requirement of seeking No Objection Certificate or No Dues Certificate from the Income Tax Department during Voluntary Liquidation Process under the Insolvency and Bankruptcy Code, 2016 (Code)

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.... New Delhi-110001 CIRCULAR No. IBBI/LIQ/45/2021 15th November, 2021 To All Registered Insolvency Professionals All Recognised Insolvency Professional Entities All Registered Insolvency Professionals Agencies (By mail to registered email addresses and on website of the Board) Dear Madam /Sir, Subject: Clarification regarding requirement of seeking No Objection Certific....

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....as been noticed that even after providing opportunity for filing of claims, the liquidators seek 'No Objection Certificate' (NOC) or 'No Dues Certificate' (NDC) from the Income Tax Department despite the fact that the Code or the Regulations do not envisage seeking such NOC/NDC. 3. In this regard, section 178 of the Income-tax Act, 1961 which, inter alia, obligates the liquidato....