Important judgment: Whether Capital Gain Tax is applicable on the sale of the fixed assets by the Liquidator ?

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Important judgment: Whether Capital Gain Tax is applicable on the sale of the fixed assets by the Liquidator ?

Important judgment passed in matter regarding Whether Capital Gain Tax is applicable and payable on the sale of the fixed assets  or not, under a Sale conducted by the Liquidator-
As per the Hon’ble NCLT Capital gain tax payable to Tax authorities is to be treated as “Operational Creditors ” and thus Capital gain tax payable during the period of liquidation would be covered under Section 53 of the IBC as Operational Debt and the IT Act would not have an overriding effect on the waterfall mechanism provided under Section 53 Of the Code. Order is attached for reference .

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