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Issues Involved:
1. Whether the official liquidator is the "principal officer" within the meaning of section 2(35) of the Income-tax Act, 1961. 2. Whether the official liquidator is obligated to file the income-tax return for the company in voluntary liquidation. Issue-wise Detailed Analysis: 1. Whether the official liquidator is the "principal officer" within the meaning of section 2(35) of the Income-tax Act, 1961: The primary question is whether the official liquidator, under section 497(6) of the Companies Act, 1956, can be considered the "principal officer" as defined under section 2(35) of the Income-tax Act, 1961. Section 2(35) states that a "principal officer" means: - (a) the secretary, treasurer, manager, or agent of the company, or - (b) any person connected with the management or administration of the company upon whom the Income-tax Officer has served a notice of his intention of treating him as the principal officer thereof. The court noted that the official liquidator is not the secretary, treasurer, manager, or agent of the company, thus sub-clause (a) does not apply. However, sub-clause (b) requires that the person must be connected with the management or administration of the company and must have received a notice from the Income-tax Officer indicating the intention to treat him as the principal officer. The court emphasized that the terms "management" and "administration" are broad and not explicitly defined in the Acts. The ordinary dictionary meanings were considered, and it was noted that the law intended a person with some connection or nexus with the management or administration, not necessarily in actual management or administration. The official liquidator, who scrutinizes the books and accounts and submits a report to the court, has a statutory duty and connection with the management or administration of the company. The court found that the official liquidator, being in charge of the accounts, books, and assets of the company, falls within the definition of "principal officer" under section 2(35)(b) of the Income-tax Act. 2. Whether the official liquidator is obligated to file the income-tax return for the company in voluntary liquidation: The Income-tax Officer requested the official liquidator to file the income-tax return for the assessment year 1966-67. The official liquidator objected, asserting that his role was limited to scrutinizing the books and submitting a report to the court, and he was not managing or administering the company's affairs. The court held that the official liquidator, being connected with the management or administration of the company, is obligated to file the income-tax return. The purpose of treating the official liquidator as the principal officer is to protect the revenue interests by ensuring that the person in charge of the accounts and assets can submit the return. The court noted that the official liquidator's duty to file the return does not make him personally liable for the company's tax liabilities but facilitates the completion of the company's tax assessment. The court dismissed the argument that the lack of assets or funds absolved the official liquidator from filing the return, stating that the Income-tax Officer is not making the official liquidator personally liable but merely ensuring compliance with statutory duties. Conclusion: The court concluded that the official liquidator, who is in charge of scrutinizing the books and papers of the company and submitting a report to the court, is the "principal officer" within the meaning of section 2(35) of the Income-tax Act. The official liquidator has a statutory duty to file the income-tax return for the company for the assessment year 1966-67. The appeal by the Income-tax Officer was allowed, with no order as to costs.
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