The Hyderabad bench of Income Tax Appellate Tribunal ( ITAT ) has directed the Assessing Officer to re-examine the issue of outstanding tax claims of the income tax department against a corporate debtor sold as a going concern, in light of the principles laid down by the Supreme Court rulings.
The appellant, M/s. RVR Enterprises company had filed its return of income declaring a loss of over ₹100 crore for the year under consideration. However, following assessment proceedings under Section 143(3) of the Income-tax Act, 1961, the Assessing Officer determined positive income of ₹11.76 crore after making additions towards retention money written off, bank guarantee invocation, inter-corporate loans, and other payables.
On appeal, the…