2001 (4) TMI 823

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..... .R. Menon for the Income-tax Department. ORDER 1. By these three reports, the Official Liquidator has sought directions as regards the liability for capital gains tax as regards sales of properties of the companies under liquidation, effected by the Official Liquidator. He has also sought directions for payment of advance tax. 2. Notice has been given to the learned Central Governm .....

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..... al gains is part of the incidence of the sale effected by the Official Liquidator of the property belonging to the company just like a liability for stamp duty, registration charges or the like. It is not a debt due by the company as on the date of commencement of winding up or the order for winding up. The decision of the Division Bench cited above is also a binding precedent. However, it is poin .....

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..... expenses in connection with the winding up. So the decision of the Division Bench that capital gains tax must be taken as part of the winding up expenses still holds good. However, in the light of the later decision in Giovanola Binny Ltd s case ( supra ) and also other instances pointed out by the Official Liquidator, it is considered necessary to have an authori- tative decision by a Division .....

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