9911796707
TMI Blog1988 (6) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ny not being able to pay off its creditors and, accordingly, the High Court had appointed an official liquidator as of 10th May, 1968 and the was in the office till 2nd Nov., 1979. During the period, the official liquidation had carried on the business in the process of winding up. For the year under review, an income Rs. 9,55,143 was determined and as a consequence thereof proceedings under s. 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 jurisdiction of the liquidator is derived from the Indian companies Act, 1956 and he works under the direct supervi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court, assessment would have to be made on the official liquidator as a representative assessee under s. 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 Sec. 454 of the Indian Companies Act, 1956 provides for statement of affairs to be made to official liquidator. Sec. 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. It also provides that all the property and effects of the Company shall be deemed to be in the custody of the Court as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Directors or the share-holders which is for the reason that the proceedings being an insolvency proceedings, to satisfy and pay off various creditors of the company, s. 104 would not be applicable at all. Sec. 103 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 s. 104 and 209 of the IT Act, 1961. The Directors and the Share-holders of the company derive power of distribution of dividend from out of the companies Act, 1956. As already elucidated above, the powers of the Directors as well as the Share-holders are in a suspended animation as the entire property as well as carrying on of the business ..... X X X X Extracts X X X X X X X X Extracts X X X X
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