CBDT Notification 93/2021: Income-tax (24th Amendment) Rules, 2021

CBDT notifies the Income-tax (24th Amendment) Rules, 2021, to insert new IT Rules 12AA and 51B prescribing ‘any other person’ who can verify ITR u/s 140 & appear before authorities u/s 288 in the case of a company/LLP.

An Income Tax Return (ITR) of a company/ LLP can be verified by certain authorised persons and ‘any other person’ as may be prescribed by the CBDT u/s 140 of the Income-tax Act, as amended by the FA 2020.

Accordingly, CBDT has inserted a new IT Rule 12AA to prescribe ‘any other person’ who can verify Income Tax Return (ITR) of a company/ LLP, i.e. the person, appointed by the NCLT for discharging the duties/ functions of an interim resolution professional (IRP), a resolution professional (RP) or a liquidator, under the IBC 2016.

Further, CBDT has inserted New IT Rule 51B which prescribes ‘any other person’ for the purpose of Section 288, as amended by the FA 2020, who can appear as an ‘Authorised Representative’, in respect of a company/ LLP, before the Income Tax Authorities, i.e. the person appointed by the NCLT for discharging the duties/ functions as an interim resolution professional (IRP), a resolution professional (RP) or a liquidator, under the IBC 2016.

CBDT Income Tax Notification 93/2021 dt. 18/08/2021: Income-tax (24th Amendment) Rules, 2021 notified to insert new IT Rules 12AA and 51B

G.S.R. 578(E).- In exercise of the powers conferred by clause (c) and clause (cd) of section 140 and clause (viii) of sub-section (2) of section 288 read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-

1. Short title.- These rules may be called the Income-tax (24th Amendment) Rules, 2021.

2. In the Income-tax Rules, 1962 (hereinafter referred to as principal rules), after rule 12A, the following rule shall be inserted, namely:-

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.

Explanation: For the purposes of this rule, “Adjudicating Authority” shall have the same meaning as assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).”

3. In the principal rules, after rule 51A, the following rule shall be inserted, namely:-

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.

Explanation: For the purposes of this rule “Adjudicating Authority” shall have the same meaning as assigned to it in clause (1) of section 5 of the Insolvency and Bankruptcy Code, 2016 (31 of 2016).”

Note: The principal rules were published in the Gazette of India, Extraordinary, Part-II Section-3, Sub Section (ii) vide number S.O. 969(E) dated the 26/03/1962 and were last amended vide notification No. G.S.R. 551(E), dated the 10/08/2021.

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