2020 (7) TMI 760 - SCH - Income Tax

Demand of Outstanding dues including taxes - respondent-Company has gone in liquidation - HELD THAT - As Official Liquidator has filed a report that the Respondent-Company (Moser Bear India Ltd.) is not financially viable and is under liquidation in proceedings pending before the National Company Law Tribunal. Even if the Appellant-Revenue were to succeed, the Official Liquidator is not in a position to pay the tax amount involved in these appeals. Indisputedly, the respondent-Company has gone in liquidation. The Company in liquidation is not in a position to pay its outstanding dues including taxes. Moreover, the tax effect in the concerned appeals is just over ₹ 2,00,00,000/- (Rupees Two Crore Only). Taking overall view of the matter, we deem it appropriate to dispose of these appeals, leaving the question of law open, to be decided in appropriate case. Ordered accordingly.

Summary

The Supreme Court of India in 2020 (7) TMI 760 - SC Order, stated that the Respondent-Company (Moser Bear India Ltd.) is not financially viable and is under liquidation. The Official Liquidator reported that the company cannot pay the tax amount involved in the appeals. The company is in liquidation and unable to pay its outstanding dues, including taxes. The tax effect in the appeals is just over Rs. 2,00,00,000. The Court decided to dispose of the appeals, leaving the question of law open for a future case.