2020 (10) TMI 1212 - HC - Income Tax

Increase the professional fees for filing of income tax return of each companies under liquidation - HELD THAT - Pursuant to the request letter dated 05.09.2020 to the Office of Official Liquidator regarding enhancement of professional fees for filing income tax return of various companies in liquidation from present rate i.e. ₹ 1300/- to ₹ 2500/- per company per assessment year, accordingly, learned advocate for the applicant has made a request to revise the professional fees. Having heard submissions made by learned advocate Mr. Pathik Acharaya and after perusal of the order passed the Co- ordinate Bench on 03.05.2013, and having regard to provisions incorporated in Income Tax Act, prayer appears to be reasonable and deserves to be partly accepted. Professional fees for filing income tax of each company in liquidation is fixed at ₹ 2000/-. Official Liquidator is permitted to make payment as per facts mentioned in para 4 to 6 of this report.

Summary

Issues:
1. Increase in professional fees for filing income tax returns for companies in liquidation.

Analysis:
The judgment pertains to a request for an increase in professional fees for filing income tax returns for companies in liquidation. The applicant sought to raise the fees from ?1300 to ?2000 per company per assessment year. The Official Liquidator is responsible for filing income tax returns and paying income tax dues for companies in liquidation as per the Income Tax Act. The applicant argued that the fees were last revised in 2013 to ?1300 per company per annum. Subsequently, a request was made to increase the fees to ?2500 per company per assessment year. After considering the submissions and the previous order from 2013, the court found the request reasonable and decided to fix the professional fees at ?2000 per company for filing income tax returns. The Official Liquidator was permitted to make payments accordingly. The judgment allowed the Official Liquidator's request to the extent of increasing the professional fees.

This analysis highlights the key points of the judgment, focusing on the issue of increasing professional fees for filing income tax returns for companies in liquidation. The court's decision to raise the fees to ?2000 per company per assessment year was based on the submissions made by the applicant and the provisions of the Income Tax Act. The judgment provides clarity on the reasoning behind the fee increase and ensures that the Official Liquidator can fulfill their obligations effectively.