Income Tax dues falls within the definition of operational debts

ACIT Vs Monnet Ispat & Energy Ltd (ITAT Delhi)

As per section 5 (21) of the IBC the dues to the Central Government also fall within the definition of operational debts and in terms of resolution plan as approved by the NCLT of the claims or demands or liabilities or obligations owned or payable to or assessed or assessable by the Central Government/ State Government in relation to any period or prior to the acquisition will be written off in full and will be deemed to be permanently extinguished.

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