The case involves an application filed by the liquidator of LML Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions on whether capital gains tax should be paid from the proceeds of asset sales of the corporate debtor and included in liquidation costs or distributed as per the waterfall mechanism under Section 53 of the IBC. The applicant has already distributed a majority of the realized amount and needs to distribute the remaining amounts according to the waterfall mechanism. The liquidator is faced with the issue of whether capital gains tax would be attracted on sales of assets as part of the liquidation estate and whether it should be included as liquidation costs, requiring the liquidator to first make provision for capital
…LML Limited is undergoing liquidation, with a liquidator appointed. The liquidator has realized Rs. 113,88,40,170/- from various auctions. The liquidator seeks direction on whether capital gains tax should be paid on the proceeds from the sale of assets of the corporate debtor and included in liquidation costs or distributed as per the waterfall mechanism under Sec 53 of IBC. The counsel for the liquidator referred to Sec 52 of the Code, wherein a secured creditor has the option to either relinquish its security interest to the liquidation estate and receive proceeds from the sale of assets by the liquidator in the manner specified in Section 53, or realize its security interest in the manner specified in this Section. The Income Tax Department argued that the amount
…Sign in to view the parties.
CP(IB) No.55/A…
CA No.389 of 2…
The case involves an application filed by the liquidator of LML Limited under Section 60(5) of the Insolvency and Bankruptcy Code, 2016, seeking directions on whether capital gains tax should be paid from the proceeds of asset sales of the corporate debtor and included in liquidation costs or distributed as per the waterfall mechanism under Section 53 of the IBC. The applicant has already distributed a majority of the realized amount and needs to distribute the remaining amounts according to the waterfall mechanism. The liquidator is faced with the issue of whether capital gains tax would be attracted on sales of assets as part of the liquidation estate and whether it should be included as liquidation costs, requiring the liquidator to first make provision for capital
…LML Limited is undergoing liquidation, with a liquidator appointed. The liquidator has realized Rs. 113,88,40,170/- from various auctions. The liquidator seeks direction on whether capital gains tax should be paid on the proceeds from the sale of assets of the corporate debtor and included in liquidation costs or distributed as per the waterfall mechanism under Sec 53 of IBC. The counsel for the liquidator referred to Sec 52 of the Code, wherein a secured creditor has the option to either relinquish its security interest to the liquidation estate and receive proceeds from the sale of assets by the liquidator in the manner specified in Section 53, or realize its security interest in the manner specified in this Section. The Income Tax Department argued that the amount
…CP(IB) No.55/A…
CA No.389 of 2…