“The management is in the process of seeking expert advice as well as exploring the manner in which recasting adjustments can be incorporated in its returns of income filed with the I-T department for respective financial years for which recast have been ordered,” the accounts for the corporate stated.An identical situation can have to be handled two of its main subsidiaries IL&FS Financial Services and IL&FS Transportation after the National Company Law Tribunal took on document the revised accounts.
While there are provisions within the regulation to permit for a refund of taxes, they’re time barred. “It will require the companies to file belated returns and then the authorities have to agree to the request,” a tax official informed TOI.
In the case of Satyam, which underwent an analogous decision course of, tax advisors stated, restatement resulted in a prolonged authorized battle, however a latest court docket order might come to rescue of IL&FS because the accounts had been restated on NCLT’s instructions. Tax consultants stated CBDT can have to supply a aid, given the “unusual situation” the place govt had to step in and take management of the corporate and lenders are bearing the losses.
Sources stated primarily based on NCLT order, IL&FS group goes to argue that the case shouldn’t be time barred because the restated accounts have solely been taken be aware of now. They additionally stated the businesses are engaged on the required experiences for tax authorities earlier than refund claims are filed, whereas acknowledging that the difficulty was sophisticated.
Given that banks will lose cash on the publicity and the government’s push to clear up, the corporate is hoping that an intervention by the tax authorities is feasible. Sources in govt, nonetheless, indicated that the method shouldn’t be going to be simple as it’ll additionally set a precedent for the longer term.
The revised accounts additionally level to extra managerial remuneration being paid by the group, primarily based on the sooner accounts, as additionally efficiency pay being doled out. As reported first by TOI, the brand new administration has now sought a refund of the “excess payment”, together with to administrators of the outdated boards, which a few of them are refusing to pay again.
