Just a moment...

⚠✕
❮ Top
☎ Help
☰
×

By creating an account you can:

Logo TaxTMI
Keyword Search :
AI Tools : New
Ask tax questions in natural language. Powered by AI trained on the TaxTMI legal database. Use AI Tools ➞
Call Us / Help / Feedback✕

Contact Us At :

✉ E-mail: [email protected]

✆ Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Make Most of Text Search ✕
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
    6. Text Search
  6. The system will try to fetch results that contains ALL your words.
  7. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
    8. Text Search
╳
Add to...
You have not created any category. Kindly create one to bookmark this item!
✕
Create New Category
Hide
Title :
Description :
❮❮ Hide
❮ Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search ❯
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text ❯
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----❯
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ---- ❯
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    NewsBills
    Providing check on survey operations under section 133A of the Act.
    NewsBills
    Provision for e-appeal.
    NewsBills
    Amendment in Dispute Resolution Panel (DRP).
    NewsBills
    Modification of e-assessment scheme.
    NewsBills
    Widening the scope of Commodity Transaction Tax (CTT).
    NewsBills
    Rationalization of tax treatment of employer’s contribution to recognized provident funds, superan...
    NewsBills
    Widening the scope of section 206C to include TCS on foreign remittance through Liberalised Remittan...
    NewsBills
    Widening the scope of TDS on E-commerce transactions through insertion of a new section.
    NewsBills
    Enlarging the scope for tax deduction on interest income under section 194A of the Act.
    NewsBills
    Reducing the rate of TDS on fees for technical services (other than professional services).
    NewsBills
    Allowing deduction for amount disallowed under section 43B, to insurance companies on payment basis.
    NewsBills
    Amendment for providing attribution of profit to Permanent Establishment in Safe Harbour Rules under...
    NewsBills
    Modification of the definition of “business trust”
    NewsBills
    Allowing carry forward of losses or depreciation in certain amalgamations.
    NewsBills
    Deferring TDS or tax payment in respect of income pertaining to Employee Stock Option Plan (ESOP) of...
    NewsBills
    Exempting non-resident from filing of Income-tax return in certain conditions.
    NewsBills
    Providing an option to the assessee for not availing deduction under section 35AD.
    NewsBills
    Increase in safe harbour limit of 5 per cent. under section 43CA, 50C and 56 of the Act to 10 per ce...
    NewsBills
    Excluding interest paid or payable to Permanent Establishment of a non-resident Bank for the purpose...
    NewsBills
    Amendment of section 194LD of the Act to extend the period of concessional rate of withholding tax a...
❮
❯
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Open Link
    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    NewsBills
    Providing check on survey operations under section 133A of the Act.
    Show AI Summary
    Survey approval requirements: amended hierarchy now mandates higher-level approval before conducting surveys under section 133A.
    Amendment introduces a tiered prior-approval regime for exercise of survey powers: where information is received from a prescribed authority, lower-ranked officers require prior approval from the intermediate supervisory tier; in other cases, officers below the senior administrative tier require prior approval from that senior tier. The change raises the approval threshold in non-prescribed-authority cases and takes effect from the stated effective date.
    NewsBills
    Provision for e-appeal.
    Show AI Summary
    E-appeal scheme to enable faceless electronic appellate proceedings and permit government to modify appellate procedure.
    A proposed insertion to section 250 empowers the Central Government to notify an e-appeal scheme to enable electronic disposal of appeals, eliminate in-person interface between Commissioner (Appeals) and appellants to the extent technologically feasible, optimise resource use through economies of scale and functional specialisation, and introduce an appellate system with dynamic jurisdiction. The power includes directing, by notification, that statutory provisions on jurisdiction and appellate procedure may not apply or may apply with specified exceptions, modifications and adaptations, and requires such notifications to be laid before both Houses of Parliament.
    NewsBills
    Amendment in Dispute Resolution Panel (DRP).
    Show AI Summary
    Dispute Resolution Panel expansion: added non-resident taxpayers can seek DRP review when AO proposes prejudicial assessment variations.
    Amendment expands the Dispute Resolution Panel (DRP) procedure to require the Assessing Officer to forward a draft assessment order when proposing any variation prejudicial to the assessee, permitting the taxpayer to file objections with the DRP whose binding directions govern the AO. The definition of eligible assessee is widened to include non-resident persons other than companies alongside foreign companies and cases with transfer pricing adjustments.
    NewsBills
    Modification of e-assessment scheme.
    Show AI Summary
    E-assessment scheme expanded to include best-judgement assessments and extend direction power through a temporary sunset period.
    Amendment expands the E-assessment Scheme, 2019 to include best judgement assessment within the scope of the scheme-making power under sub-section (3A) of section 143, and permits the Central Government to issue directions under the provision for a prescribed limited period, effective from the commencement of the stated assessment year.
    NewsBills
    Widening the scope of Commodity Transaction Tax (CTT).
    Show AI Summary
    Commodity Transaction Tax expansion: new tax coverage for options in goods and derivatives tied to other derivatives.
    Amendments expand the scope of Commodity Transaction Tax (CTT) to include sales of derivatives based on prices or indices of commodity derivatives and sales of an option in goods, and replace "recognised association" with "recognised stock exchange". The proposal allocates CTT liability by product and settlement mode-seller liability for derivatives based on derivatives' prices or indices, purchaser liability for exercised options in goods with different treatment for physical delivery versus non-delivery settlement-and updates statutory definitions, the CTT schedule, and value computation accordingly.
    NewsBills
    Rationalization of tax treatment of employer’s contribution to recognized provident funds, superan...
    Show AI Summary
    Employer contribution cap to retirement funds: excess employer contributions taxable and related accretions treated as perquisite.
    A combined upper limit is proposed on employer contributions to the National Pension Scheme, superannuation funds and recognized provident funds; employer contributions exceeding the combined cap in a year will be taxable, and annual accretions to the fund relating to such employer contributions shall be treated as a perquisite to the extent included in total income.
    NewsBills
    Widening the scope of section 206C to include TCS on foreign remittance through Liberalised Remittan...
    Show AI Summary
    Tax Collected at Source expanded to cover overseas remittances, tour packages and sales-based collections with specified exemptions.
    Amendments expand Tax Collected at Source (TCS) under section 206C to require authorised dealers to collect TCS on specified overseas remittances under LRS and sellers to collect TCS on sale of overseas tour packages, both with higher rates for non-PAN/Aadhaar cases and specified exemptions. Separately, sellers with turnover above a prescribed threshold must collect TCS on sale of goods above a set consideration limit, subject to notification-based exemptions and exclusions for certain government and diplomatic entities. Provisions take effect from 1 April 2020.
    NewsBills
    Widening the scope of TDS on E-commerce transactions through insertion of a new section.
    Show AI Summary
    TDS on e commerce transactions: operators must withhold on gross platform receipts and treat direct payments as operator credits.
    A new provision imposes TDS on e commerce transactions by requiring the e commerce operator to deduct tax on the gross amount of sales or services when credited to or paid to an e commerce participant; direct payments by purchasers are treated as operator payments. Low volume individual and HUF participants who furnish PAN or Aadhaar are exempt from withholding. The provision overrides other TDS liabilities for the same transactions, excludes operator receipts for unrelated advertising services, and includes definitions and consequential amendments to align withholding and procedural provisions.
    NewsBills
    Enlarging the scope for tax deduction on interest income under section 194A of the Act.
    Show AI Summary
    Tax deduction on interest income: large co-operative societies must withhold tax when turnover and per payee interest exceed specified thresholds.
    The amendment narrows exemptions in section 194A(3) so that a co operative society otherwise exempt under clause (v) or (viia) must deduct tax at source if it exceeds a specified turnover threshold in the preceding year and if the interest credited or paid to a payee in the financial year exceeds specified per payee thresholds, with separate thresholds for senior citizens and others.
    NewsBills
    Reducing the rate of TDS on fees for technical services (other than professional services).
    Show AI Summary
    TDS on technical services adjusted to reduce classification disputes and align withholding with work contract payments.
    To reduce classification disputes and litigation, the law prescribes a reduced withholding rate specifically for fees for technical services (other than professional services), aligning its TDS incidence more closely with that applicable to payments for execution of work contracts; withholding rates for other categories of fees remain unchanged and the amendment takes effect from the commencement date specified in the measure.
    NewsBills
    Allowing deduction for amount disallowed under section 43B, to insurance companies on payment basis.
    Show AI Summary
    Deduction timing for Section 43B: insured business expenses disallowed earlier permitted when actually paid.
    A proviso is proposed to Rule 5 of the First Schedule so that any sum added back under Section 43B in accordance with clause (a) of Rule 5 shall be allowed as a deduction in computing income under the rule in the previous year in which such sum is actually paid; the amendment takes effect from 1 April 2020 and applies to assessment year 2020-21 and onwards.
    NewsBills
    Amendment for providing attribution of profit to Permanent Establishment in Safe Harbour Rules under...
    Show AI Summary
    Attribution to Permanent Establishment now covered in safe harbour rules and advance pricing agreements, providing transfer pricing certainty.
    Amendments expand Safe Harbour Rules to permit acceptance of declared transfer prices that address attribution of profits to a Permanent Establishment, and amend Advance Pricing Agreement provisions to allow APAs to determine or specify the manner of determining such attribution, thereby extending transfer pricing certainty to both safe harbour and APA mechanisms for future and rollback years.
    NewsBills
    Modification of the definition of “business trust”
    Show AI Summary
    Business trust definition modified: listing requirement removed so tax pass-through and regime apply to unlisted trusts.
    The proposal amends clause (13A) of section 2 to remove the requirement that units be listed on a recognised stock exchange for a trust to qualify as a business trust, aligning the income tax definition with SEBI amendments that eliminated mandatory listing for InvITs; under section 115UA such trusts remain subject to taxation rules including pass through treatment for SPV interest and rent and filing and reporting obligations.
    NewsBills
    Allowing carry forward of losses or depreciation in certain amalgamations.
    Show AI Summary
    Carry forward of losses extended to statutory bank and government insurance company amalgamations under specified nationalisation schemes.
    Section 72AA's allowance for carry forward of accumulated losses and unabsorbed depreciation is extended to include amalgamations of corresponding new banks under the Banking Companies (Acquisition and Transfer of Undertakings) Acts and amalgamations of Government companies arising under the General Insurance Business (Nationalisation) Act, with defined terms to be read from those enactments and the extension operating notwithstanding specified exclusions in the Act.
    NewsBills
    Deferring TDS or tax payment in respect of income pertaining to Employee Stock Option Plan (ESOP) of...
    Show AI Summary
    Deferral of TDS on ESOP perquisites allows employers to delay tax deduction until sale or employment cessation.
    Amendments permit eligible start-ups to defer deduction or payment of tax on ESOP perquisites: tax must be deducted or paid within fourteen days of the earliest of (i) expiry of the prescribed post-allotment period, (ii) sale of the specified security or sweat equity share by the employee, or (iii) cessation of employment. Tax is computed using the rates applicable in the financial year when the security or share was allotted or transferred.
    NewsBills
    Exempting non-resident from filing of Income-tax return in certain conditions.
    Show AI Summary
    Non-resident return filing exemption extended to royalty and FTS when withholding tax is applied at prescribed rates.
    A statutory amendment will exempt a non-resident from filing an income-tax return where the non-resident's total income consists solely of dividend or interest, or specified royalty or fees for technical services, provided that withholding tax on such income has been deducted under Chapter XVII-B at rates not lower than the rates prescribed for tax determination under section 115A(1); the amendment takes effect from the stated commencement date and applies to the relevant assessment year and subsequent years.
    NewsBills
    Providing an option to the assessee for not availing deduction under section 35AD.
    Show AI Summary
    Optional 35AD deduction safeguards right to claim depreciation where assessee forgoes the investment allowance under amended rules.
    The amendment makes the 100% capital expenditure deduction under section 35AD optional and restricts the sub section (4) non allowance rule so that other deductions, including normal depreciation, are disallowed only if the section 35AD deduction has been claimed and allowed; the change applies prospectively to the assessment year beginning 1 April 2020.
    NewsBills
    Increase in safe harbour limit of 5 per cent. under section 43CA, 50C and 56 of the Act to 10 per ce...
    Show AI Summary
    Safe harbour threshold for stamp valuation adjustments increased, reducing valuation-driven recharacterisation of consideration for transfers.
    Increase of the safe harbour threshold from five per cent to ten per cent for valuation comparisons where declared consideration for transfer or receipt of immovable property is lower than the stamp valuation authority's value, so that a declared consideration within the safe harbour is treated as the full value for computing capital gains or income from other sources; effective from 1st April, 2021 and applying to the relevant assessment year and subsequent years.
    NewsBills
    Excluding interest paid or payable to Permanent Establishment of a non-resident Bank for the purpose...
    Show AI Summary
    Interest limitation carve-out excludes debt from permanent establishments of foreign banks from interest disallowance under amended rules.
    The amendment provides that the interest limitation will not apply to interest paid in respect of debt issued by a lender which is a permanent establishment of a non-resident engaged in banking in India, thereby carving out loans from branches of foreign banks from the section 94B restriction and avoiding application of the earnings based disallowance to such debt.
    NewsBills
    Amendment of section 194LD of the Act to extend the period of concessional rate of withholding tax a...
    Show AI Summary
    Concessional withholding tax extended and applied to municipal debt, enabling foreign investor interest relief within a renewed operative window.
    Amendment to section 194LD extends the concessional withholding tax regime and applies the concessional rate to interest on municipal debt securities by Foreign Institutional Investors and Qualified Foreign Investors, preserving the reduced TDS rate for eligible interest payments and changing the operative period so that interest paid within the newly prescribed window qualifies for the concession, with the amendment taking effect from the start of the specified fiscal period.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Home› TMI Notes › IBC › Case-Laws › Category › This
      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters
      IBC

      Resolution Applicant's Eligibility under the IBC: A Balancing Act Between Stringent Rules and MSME Protection

      25 January, 2024

      Contents
      Acts
      Plus +
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Print Options

      Deciphering Legal Judgments: A Comprehensive Analysis of Case Law

      Reported as:

      2023 (12) TMI 1255 - Supreme Court

      Case Overview

      In the case of 2023 (12) TMI 1255, the Supreme Court dealt with significant issues regarding the applicability and interpretation of specific provisions under the Insolvency and Bankruptcy Code 2016 (IBC). The appellant, a Resolution Professional, presented a resolution plan to the National Company Law Tribunal (NCLT), which was dismissed on grounds that the promoters could not have presented the plan​​.

      Core Legal Issues

      1. Eligibility of the Resolution Applicant under Section 29A of the IBC: The primary concern was whether the resolution applicant was disqualified under the conditions specified in Section 29A of the IBC.

      2. Impact of MSME Status on Eligibility: The second issue focused on the impact of the corporate debtor's status as a Micro, Small, and Medium Enterprise (MSME) at the commencement of the Corporate Insolvency Resolution Process (CIRP) on the eligibility of the resolution applicant under Section 29A, considering the potential benefits of Section 240A​​.

      Detailed Analysis of Legal Provisions and Interpretation

      1. Section 29A of the IBC: This section outlines the ineligibility criteria for resolution applicants. Key aspects include the classification of an account as a non-performing asset (NPA) and the requirement that at least one year should elapse from such classification until the commencement of the CIRP​​.

      2. Amendment by Act 8 of 2018: This amendment, effective from November 23, 2017, aimed to prevent persons responsible for a company's financial woes from submitting a resolution plan to take over the company​​.

      3. Interpretation of Section 29A (c): The Supreme Court clarified that the stage of ineligibility attaches at the time the resolution plan is submitted. This interpretation is consistent with the Insolvency Law Committee Report of March 2018​​.

      4. Section 240A and MSMEs: Introduced as an amendment in 2018, this section exempts MSMEs from certain disqualifications under Section 29A. The rationale behind this exemption is to protect the interests of MSMEs, which are integral to the economy, from being pushed into liquidation, thereby safeguarding the livelihoods of their employees and workers​​.

      5. Crucial Date for Eligibility: The Supreme Court opined that the relevant date for determining the eligibility of a resolution applicant under Section 240A should be the date of submission of the resolution plan, rather than the initiation of the CIRP proceedings​​.

      Final Judgment and Consequences

      The Supreme Court set aside the impugned orders of the NCLT and the National Company Law Appellate Tribunal (NCLAT) and allowed the appeal, leading to the restoration of the case to the NCLT for reconsideration. Consequently, any actions taken by the Insolvency and Bankruptcy Board of India (IBBI) against the appellant based on the impugned order were rendered void​​.

      Conclusion

      This case underscores the Supreme Court's interpretative approach to the IBC, particularly in relation to the eligibility of resolution applicants and the special considerations afforded to MSMEs. The decision reflects a balancing act between the strict enforcement of the IBC’s provisions and the need to protect the unique position of MSMEs in the Indian economy.

       

      Full Text:

      2023 (12) TMI 1255 - Supreme Court

      Topics

      ActsIncome Tax
      Next ➔