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Tax assessment of IBC cases: IRPs, RPs and liquidators can appear before taxman, rules CBDT

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Interim resolution professionals (IRPs) and resolution professionals (RPs) have now got the formal recognition of income tax authorities for dealing with the tax matters of the corporates that are undergoing Corporate Insolvency Resolution Process (CIRP) of the Insolvency and Bankruptcy Code (IBC). The Central Board of Direct Taxes (CBDT) in the Finance Ministry has made it clear that these professionals and liquidators appointed under IBC can now verify the income tax returns to be submitted by an LLP or a company undergoing CIRP. Under the income tax law, the verification process requires a declaration to be signed by such a specific person confirming that information given in the return and schedule is correct and complete. Now, IRPs and IPs can also sign in such declarations and the earlier stipulation of getting company Director's signature now stands modified.