Open Access Research Article
THE CONSTITUTIVE AND LEGISLATIVE INTERSECTION OF TAXATION AND INSOLVENCY IN INDIA: A COMPREHENSIVE ANALYSIS
Abstract
Abstract
The crossroad of the
Insolvency and Bankruptcy code (IBC), 2016 and the income tax act, 1961 is one
of the most complicated jurisdictions in Indian corporate law. This article
offers a detailed discussion of the changing priority of tax claims following bankruptcy
administration, discussing the move of the old doctrine of Crown Debt to the
present umphasizing of Creditor-in-Control. The Clean Slate Theory lies at the
heart of this research and it is important to ensure that a successful
candidate in the resolution process is not weighted by the hidden liabilities
in terms of taxes. In a discussion of the leading case law, such as decisions
of the Supreme Court in Ghanashyam Mishra and Rainbow Papers, this study sheds
light on the statutory attempts to reconcile the recovery of taxes with the
larger goal of corporate rescue. The analysis also provides an analysis on
particular statutory reliefs that are availed by the Acts of Income Tax like
the softening of Section 79 and MAT provisions that are critical fiscal
stimulus in the process of rescuing troubled assets. Finally, the article
suggests that even though the IBC upholds supremacy through Section 238, a
balancing act between the economic stability and interests of the state revenue
is necessary as the game between the tax and insolvency regime continues.
Published Paper
Author Details
Authors: TAPASWINAAG DANDAMUDIRegistration ID: 1013252 | Published Paper ID: IJLRA13252Year: Sep-2026 | Volume: 3 | Issue: 6Approved ISSN: 2582-6433 | Country: Delhi, IndiaPage No.: 1801-1812
Article Information
THE CONSTITUTIVE AND LEGISLATIVE INTERSECTION OF TAXATION AND INSOLVENCY IN INDIA: A COMPREHENSIVE ANALYSIS
Authors: TAPASWINAAG DANDAMUDI
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 6
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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