9911796707
TMI Blog1986 (11) TMI 297X X X X Extracts X X X X X X X X Extracts X X X X ..... orders of assessment under the Agricultural Income-tax Act, 1950, in respect of which the amounts due were sought to be recovered, were null and void and of no effect. The learned judge held that those orders were made otherwise than in compliance with the rules of natural justice, in so far as the respondent-official liquidator, Palai Central Bank, had not been heard. The orders of assessment in question are in respect of the assessment years 1975-76, 1976-77 and 1977-78. The property belonged to the late Joseph Augustine, whose legal representative is John Mathew. As a director of the company at the relevant time, proceedings were initiated against Augustine and others under the Companies Act for misfeasance. As per the order of this c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment. It is a well accepted principle of administrative law that, except in cases of total nullity a rare and exceptional phenomenon in public law the order of a competent authority remains effective and operative until set aside or declared void by due process of law. It is true that an error going to jurisdiction breach of natural justice is such an error makes the order void, but not so void as to be a total nullity. It is void only in so far as it is voidable, and until set aside or its invalidity declared, it continues to operate against the person against whom it was made. But once it is quashed, it is deprived of all legal effect right from its inception. On the other hand, an order which is not void but only voidable a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee even if the assessee be the company which is being wound up by the court. The orders made by the Income-tax Officer in the course of assessment or reassessment proceedings are subject to appeal to the higher hierarchy under the Income-tax Act. There are also provisions for reference to the High Court and for appeals from the decisions of the High Court to the Supreme Court and then there are provisions for revision by the Commissioner of Income-tax. It would lead to anomalous consequences if the winding up court were to be held empowered to transfer the assessment proceedings to itself and assess the company to income-tax.......The language of section 446 must be so construed as to eliminate such startling consequences as investing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r by the Supreme Court in appeal from the decision of the High Court. The jurisdiction of the company court in such matters is confined to the question whether the debt arising from the orders of assessment being an unsecured debt is one which is payable in terms of the relevant provisions of Chapter V (read with the provisions of the Insolvency Act, 1956). The debt in question, being an unsecured debt, ranked pari passu with other debts in the order of preference mentioned under section 530. That is the law which has to be applied in regard to the payment of debts. It is to that end that jurisdiction is conferred upon the liquidation court in matters arising under section 446. Assuming that the orders of assessment were null and void for ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
