Summary
- The NCLT Mumbai has ruled that the Income Tax Department's adjustment of ₹1,70,05,107 against tax demands during the moratorium of PMT Machines Limited's CIRP is invalid.
- The Tribunal emphasized that such adjustments violate Section 14 of the Insolvency and Bankruptcy Code, allowing both applications by Resolution Professional Ram Ratan Kanoongo.
- Additionally, the Tribunal ordered the Department to refund ₹2,68,93,499 within four weeks for various assessment years.
- This decision reinforces protections for corporate debtors during insolvency proceedings and highlights the limits on creditor actions during a moratorium.
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