9911796707
TMI Blog1988 (6) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... the creditors of the company had prayed for winding up of the company in view of the company not being able to pay off its creditors and accordingly, the High Court had appointed an Official Liquidator as on 10th of May, 1968 and he was in the office till 2nd of November 1979. During this period, the Official Liquidator had carried on the business in the process of winding up. For the year under review, an income of Rs. 9,55,143 was determined and as a consequence thereof proceedings under section 104 were initiated. The fact that the company was under liquidation, was looked after by the Official Liquidator of the High Court of Rajasthan is not in dispute. The plea of the assessee was that in view of the creditors winding up, the jurisdic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he parties. In respect of a company under liquidation, where Official Liquidator had been appointed by a High Court assessment would have to be made on the Official Liquidator as a representative assessee under section 160(1)(iii), which provides for representative to include such person, who in fact, manages property on behalf of another appointed by or under any order of a Court. 4.1 Section 454 of the Indian Companies Act, 1956 provides for statement of affairs to be made to Official Liquidator. Section 456 of the Companies Act provides that where liquidator has been appointed, he shall take into his custody or under his control, all the property, effects and actionable claims to which the company is entitled or appears to be entitled. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the company not being able to discharge its indebtedness, the powers having vested with the Court and not with the directors or the shareholders, which is for the reason that the proceedings being an insolvency proceedings, to satisfy and pay off various creditors of the company, section 104 would not be applicable at all. Section 104 is applicable to companies, which do not fall within the purview of liquidation and which are termed as going concerns. This is obvious from the plain reading of the provisions contained in section 104 and 209 of the Income-tax Act, 1961. The directors and the shareholders of the company derive from power of distribution of dividend from out of the Companies Act, 1956. As already elucidated above, the power ..... X X X X Extracts X X X X X X X X Extracts X X X X
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