Income Tax

Signing of ITRS and appearance by authorised representatives for assessees under bankruptcy

Signing of ITRS and appearance by authorised representatives for assessees undergoing bankruptcy. The Income-tax (24th Amendment) Rules, 2021

Signing of ITRS and appearance by authorised representatives for assessees undergoing bankruptcy. Section 140 of the Income Tax Act 1961 prescribes who shall verify the income tax return (ITR) for various categories of the assessees i.e individual, HUF, company, firm etc.

Clause (c) and clause (cd) of section 140 provides for persons authorised to verify ITR of the company and Limited Liability Partnership (LLP) respectively.

CBDT has notified the Income-tax (24th Amendment) Rules, 2021 by inserting a following Rule 12A to prescribe persons authorised to verify the ITR of the company or LLP under under the Insolvency and Bankruptcy Code, 2016 

Rule 12AA Prescribed person for the purposes of clause (c) and clause (cd) of section 140

For the purpose of clause (c) or clause (cd), as the case may be, of section 140, any other person shall be the person, appointed by the Adjudicating Authority for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and the rules and regulations made thereunder.

Further, section 288 of the Act prescribes persons appearance by authorised representative. The amendment has inserted a new Income Tax Rule 51B to prescibe authorised persons in certain cases as under:

51B. Appearance by Authorised Representative in certain cases

For the purposes of clause (viii) of sub-section (2) of section 288, any other person, in respect of a company or a limited liability partnership, as the case may be, shall be the person appointed by the Adjudicating Authority for discharging the duties and functions of an interim resolution professional, a resolution professional, or a liquidator, as the case may be, under the Insolvency and Bankruptcy Code, 2016 (31 of 2016) and the rules and regulations made thereunder.

 Download CBDT Notification No. 93/2021 Click Here >>

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