New Delhi | Mumbai: Assessing officials continue to raise fresh tax demands on companies coming out of corporate insolvency, defying the ‘clean slate’ provision provided under the Insolvency and Bankruptcy Code (IBC) and multiple court rulings, throwing successful resolution applicants into legal limbo.
Several such companies have faced tax demands over pre-acquisition liabilities, and have moved courts, legal experts and industry insiders told ET.
Recent examples include Tata Steel, which was slapped with an income addition of ‘25,185 crore in respect of a debt waiver pertaining to Bhushan Steel before the Tatas acquired the company under IBC in 2018.
Tata Steel has challenged it before the Bombay High Court. “Waiver of debt cannot be…
