NCLT Bars Income Tax Department From Adjusting Refunds Against Pre-CIRP Dues
Wind World (India) Limited entered the Corporate Insolvency Resolution Process (CIRP) after the National Company Law Tribunal, Ahmedabad Bench, admitted the insolvency petition on 20 February 2018. As a result, a moratorium under Insolvency and Bankruptcy Code, 2016 came into force. During the CIRP, the Resolution Professional filed income-tax returns for AY 2019-20 to AY 2024-25. These filings resulted in tax refunds of about Rs. 35.67 crore along with interest.
Although the Income Tax Department acknowledged the refunds through intimations issued under Income Tax Act, 1961, it went ahead and adjusted part of the refund against old tax demands relating to…