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Enhanced focus on disclosure of tax losses in the Information Memorandum (IM)

Introduction

India, Insolvency & Restructuring, Khaitan & Co, Insolvency, Insolvency and Bankruptcy Board of India, National Company Law Tribunal
Hong Kong Court of First Instance follows the Guy Lam approach notwithstanding the recent English Privy Council's decision in Sian Participation

We recently blogged (here) about the Privy Council decision of Sian Participation Corporation (In Liquidation) v Halimeda InternationalLtd [2024] UKPC 16 (

Hong Kong, Arbitration & ADR, Insolvency & Restructuring, Litigation, Herbert Smith Freehills LLP, Liquidation
Supreme Court relieves borrowers from tax on waiver of principal portion of loan

In the recent case of Commissioner v Mahindra and Mahindra Limited (Judgment) [Civil Appeal Nos. 6949-6950 of 2004], a division bench of the Supreme Court of India (SC) has ruled that waiver of principal portion of loan (which was taken for capital account transaction) by a creditor is not taxable in borrower’s hands under section 28(iv) or section 41(1) of the Income-tax Act 1961 (Act). Taxability of loan waiver has been a matter of debate and the relevant provisions under normal income-tax computation provide as under:

India, Insolvency & Restructuring, Litigation, Tax, Khaitan & Co, Waiver, Income-Tax Act 1961 (India), Supreme Court of India