Weather personal liability for payment of tax could be fixed on Official Liquidator in view of section 178(4) of Act.

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..... not pay the tax arrears for the assessment years 1970-71,1971-72 and 1973-74 due from a company which had gone in liquidation on the ground that he had distributed after obtaining the orders of the court the sale proceeds of the properties belonging to the company among the creditors much earlier to the raising of the demand by the department. The facts of the case in brief are that the Official .....

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..... aw. The Board are advised that as the liquidator had given notice of his appointment under sub-section(1) but the ITO failed to send an intimation under sub-sec(2), there is no failure on the part of the liquidator under sub-sec(3) of sec.178. Accordingly it would be difficult to fix any personal liability for the tax on the official liquidator. The board are however advised that, in such cases, w .....

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..... tal gains that may arise on the sale of assets during liquidation proceedings of the company. 5. It may be incidentally clarified that recoveries made through the liquidator u/s.178 are without prejudice to any action the ITO may take u/s.179 against the directors of private companies who come within the purview of the section. - Circular - Trade Notice - Public Notice - Instructions - Office .....

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