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TMI Blog1995 (7) TMI 282X X X X Extracts X X X X X X X X Extracts X X X X ..... ne whether or not any assessment of the tax liability of a notified person by the appropriate authority is bona fide or reasonable or justified or enforceable. - CIVIL APPEAL NO. 6323 (NT) OF 1995 [ARISING OUT OF SLP (CIVIL) NO. 11594 OF 1995] - - - Dated:- 18-7-1995 - A.M. AHMADI AND S.P. BHARUCHA, JJ. D.P. Gupta, Ms. A. Subhashini and S.N. Terdol for the Appellant. Atul Setalvad, A.D.N. Rao, A. Subba Rao, Jahangir D.J. Mistri, Kartik Desai and Ms. Lata Krishnamurthy for the Respondent. ORDER 1. Special leave granted. 2. This appeal is filed against an order of the Special Court appointed under the provisions of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt for the trial of offences relating to transactions in securities and for matters connected therewith or incidental thereto. The Act requires the appointment of a Custodian thereunder who is, inter alia, required to deal with the property of persons notified in such manner as the Special Court may direct. The Special Court has jurisdiction, under section 7 of the Act, exclusively to hear and decide prosecutions in respect of offences under the said Act, that is to say, offences relating to transactions in securities after 1-4-1991 and on or before 6-6-1992. By reason of the amendment of the said Act and the inclusion of sections 9A and 9B of the Act, the Special Court is invested with civil jurisdiction in regard to such transactions. S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opardised. 4. Our attention was drawn by Mr. A.M. Setalvad, the learned counsel for the Custodian, to the judgment of this Court in S.V. Kondaskar v. V.M. Deshpande AIR 1972 SC 878, and to the observation thereunder that the liquidation court would have full power to scrutinise the claim of the revenue after income-tax has been determined and its payment de- manded from the liquidator. It would be open to the liquidation court then to decide how far under the law the amount of income-tax deter- mined by the Department should be accepted as a lawful liability on the funds of the company in liquidation. At that stage the winding up court can fully safeguard the interests of the company and its creditors under the Act . The question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 the winding up court with the powers of an Income-tax Officer conferred on him by the Income-tax Act, because in our view the Legislature could not have intended such a result. It is after these observations that the Court made the observation to which Mr. Setalvad drew our attention. It is perfectly clear, in the circumstances, that this observation referred only to the obligation of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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