With the enactment of the Insolvency and Bankruptcy Code, 2016 (IBC), insolvency professionals viz: resolution professional, an interim resolution professional or a liquidator are empowered to devise a plan to re-structure/revive a company if it is unable to pay its debts, via Corporate Insolvency Resolution Process and, if that fails too, to liquidate the company.

While IBC empowers insolvency professionals to manage the affairs of the corporate debtor, exercise powers of the board of directors, undertake compliances, etc. on behalf of a corporate debtor, similar enabling provisions were missing under the Income Tax Act, 1961 (the Act) (except for signing tax return in case of a company, against whom insolvency application has been admitted). Finance Act 2020 amended the provisions of the Act, thereby authorizing ‘any other person’ to sign the tax return of a Company & Limited Liability Partnership. Similarly, provisions of ‘Authorized representative’ were amended to provide that ‘any other person’ would be eligible to act as an authorized representative in any of the proceedings under the Act. The term ‘any other person’ however, was not prescribed or notified.

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