Voluntary liquidation does not require NOC or NDC of Income Tax Department
MUMBAI: The Board of Insolvency and Bankruptcy of India (IBBI) has clarified that for the expeditious disposal of corporate bankruptcy cases, insolvency professionals have to obtain a certificate of any non-objection (NOC) or any outstanding debt from the income tax department while processing voluntary liquidation. NDC) will not be required. The move is expected to reduce some of the burden of compliance in bankruptcy proceedings. The IBB said, "The process of applying for and obtaining such NOCs / NDCs from the Income-tax department takes a long time and thus goes against the clear provisions of the Act as well as thwarting the objective of timely completion of the process under the Act." Section 17 of the Income-tax Act, 181 obliges the liquidator to meet certain income-tax requirements. This section also makes it clear that its provisions, apart from the provisions of this Act, "shall be effective even if contrary to any other law." The IBBI clarified that t...