In case of Going Concern Sale in Liquidation process, Successful Bidder can approach to Income Tax Authority to get the benefits of brought forward losses – Consortium of RVR Enterprises Vs. G. Madhusudan Rao Liquidator of Chadalavada Infratech Ltd. – NCLT Hyderabad Bench
The successful bidders of Corporate Debtor filed this application under Section 60(5)(c) of IBC r/w NCLT Rule 11 seeking certain reliefs to them to kickstart the business of the Corporate Debtor. NCLT held that the Corporate Debtor is entitled to get the benefits of brought forward losses, if any, subject to permission of the appropriate authority, if so entitled under the relevant provisions of the Income Tax Act, 1961. As far as the prayer for considering the bid submitted by the successful bidder as Resolution Plan under Section 79 of Income Tax Act, 1961 is concerned, the bidder may approach the authority concerned who would consider such request under the Income Tax Act.