In event Successful Resolution Application (SRA) is entitled for benefit of Section 79(2) of Income Tax Act, 1961 to carry forward accumulated losses, it shall be open to file an appropriate application before the competent jurisdictional Income Tax Authority to claim the benefit – GMSRA Infracon Pvt. Ltd. Vs. Shreebhav Polyweaves Pvt. Ltd. and Ors. – NCLAT New Delhi
In this case, counsel for the Appellant/Successful Resolution Applicant/SRA submitted that the benefit of Section 79(2) for carry forward the accumulate losses has to be extended to the SRA, however, the Adjudicating Authority has issued direction to the Successful Resolution Application to approach the concerned statutory authority for the concessions.
Hon’ble NCLAT holds that in event the Appellant is entitled for benefit of Section 79(2) to carry forward accumulated losses, it shall be open for the Appellant to file an appropriate application before the competent jurisdictional Income Tax Authority to claim the benefit. No error has been committed by the Adjudicating Authority by directing the Successful Resolution Application to approach the concerned statutory authority.
