Corporate Updates 04 April 2014

Company Law: 

The Principal Bench of Company Law Board, Delhi in one of the Judgment held that Where ex-director has resigned prior to appointment of provisional liquidator, he/she is not liable to compensate company-under-liquidation for non-recovery debts due to company by reason of non-furnishing of sufficient particulars/records by directors.

Income Tax: 

The income Tax has clarified that the income of a firm is to be taxed in the hands of the firm only and the same can under no circumstances be taxed in the hands of its partners. Accordingly, the entire profit credited to the partners’ accounts in the firm would be exempt from tax in the hands of such partners, even if the income chargeable to tax becomes NIL in the hands of the firm on account of any exemption or deduction as per the provisions of the Act.

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