No TDS is deductible from payment made towards liquidation sale of assets of the Corporate Debtor and any such deduction is to be refunded to the Corporate Debtor – Shri Kanekal Chandrasekhar Liquidator of Southern Batteries Pvt. Ltd. Vs. Chief Commissioner of Income Tax, Bengaluru – NCLT Bengaluru Bench
August 7, 2024
In this case, the Successful Auction Purchaser deducted TDS amount of Rs. 1,20,50,000 being 1% of the consideration of the immovable property.
Hon’ble NCLT Bengaluru Bench referring the order passed by the Hon’ble NCLAT in the matter of Om Prakash Agrawal Liquidator v. Chief Commissioner of Income Tax (TDS) and Anr. (2021) ibclaw.in 54 NCLAT, which has been followed by co-ordinate Benches, i.e., NCLT Mumbai in the matter of Nico Extrusions Ltd. Vs. Nicomet Industries Ltd and NCLT Ahmedabad in the matter of Sunil Kumar Agarwal Liquidator of Varia Engineering Works Pvt. Ltd. vs. Chief Commissioner of Income Tax (TDS) (2023) ibclaw.in 1030 NCLT, disposed of by directing the Income Tax Department to refund the amount of TDS into the account of Corporate Debtor, within one month from the date of this order.
