Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2016 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (9) TMI 1039 - HC - Income TaxRecovery proceedings - valid debtor - Held that:- M/s. N.K.Industries Ltd. waived its rights under agreement dated 02.09.2011 and subsequent agreement dated 05.01.2013 and also waived execution of the sale deed. In turn, M/s. Banpal Oil Chem Pvt. Ltd agreed to return consideration of ₹ 10.75 crores already paid by M/s. N.K.Industries Ltd. and M/s. N.K.Industries Ltd. withdrew the suit for specific performance from the civil court. We notice that in the earlier portion of this agreement there is a wrong reference to the terms of the agreement dated 09.04.2015. This, however, would not be of any consequence since the latest agreement dated 23.07.2015 is clear in all material terms and essentially brings about an end to the relationship between M/s. N.K.Industries Ltd. and M/s. Banpal Oil Chem Pvt. Ltd. That being the position, the Tax Recovery Officer was not correct in contending that M/s. N.K.Industries Ltd. owed any amount to M/s. Banpal Oil Chem Pvt. Ltd which can be recovered directly for the tax dues of M/s. Banpal Oil Chem Pvt. Ltd. The impugned order dated 10.06.2016 is, therefore, set aside. We make it clear that if the department has any recovery to be made either against M/s. Banpal Oil Chem Pvt. Ltd or M/s. N.K.Industries Ltd., it is always open for them to proceed in accordance with law.
|