43. Amendment of section 140.
In section 140 of the Income-tax Act, in clause (c), in the second proviso,––
(A) in clause (b), after the words “ principal officer thereof;” occurring at the end, the word “or” shall be inserted;
(B) after clause (b), the following shall be inserted, namely:––
‘(c) where in respect of a company, an application for corporate insolvency resolution process has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016), the return shall be verified by the insolvency professional appointed by such Adjudicating Authority.
Explanation.––For the purposes of this clause the expressions “insolvency professional” and “Adjudicating Authority” shall have the respective meanings assigned to them in clause (18) of section 3 and clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016) ;’.
Notes on Clauses:
Clause 43 of the Bill seeks to amend section 140 of the Income-tax Act relating to return by whom to be verified.
It is proposed to amend the said section so as to provide that where in respect of a company an application has been admitted by the Adjudicating Authority under section 7 or section 9 or section 10 of the Insolvency and Bankruptcy Code, 2016, the return shall be verified by the insolvency professional appointed by such Adjudicating Authority.
It is further proposed to define the expressions "insolvency professional" and "Adjudicating Authority" in the said section.
These amendments will take effect from 1st April, 2018.
