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TMI Blog2005 (2) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Officer observes: "Thus, the managing director has cheated not only Government, but the public shareholders also." Once this finding was recorded in the light of the facts on record, it was not open to the Assessing Officer to impose penalty for concealment and/or furnishing inaccurate particulars of income by resorting to the Explanation to section 271(1)(c) on the official liquidator of the company in liquidation – penalty rightly deleted - - - - - Dated:- 15-2-2005 - Judge(s) : D. A. MEHTA., MS. H. N. DEVANI. JUDGMENT The judgment of the court was delivered by D.A. Mehta.- The Income-tax Appellate Tribunal, Ahmedabad Bench "A", has referred the following question for the opinion of this court under section 256(1) of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r attached to this High Court was appointed as liquidator of the company under the provisions of the Companies Act, 1956. The notice under section 148 of the Act came to be served on the official liquidator on September 30, 1977. The official liquidator informed the Assessing Officer vide letter dated January 12, 1978, that he was not a person authorised to sign the return of income as provided under section 140 of the Act. He, however, delivered the annual report containing audited balance-sheet, profit and loss account along with a statement showing computation of total income of January 28, 1978. In the forwarding letter of even date, it was stated that the total income was worked out at Rs. 30,50,605 subject to admissible deductions/a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missed the appeal. On further appeal, the Tribunal cancelled the penalty for the reasons stated in its impugned order. Mr. M.R. Bhatt, learned senior standing counsel, appears on behalf of the applicant-Revenue. Though served, there is no appearance on behalf of the respondent-company in liquidation. It was submitted by Mr. Bhatt that, though the official liquidator may not be the person whose acts of omission or commission would lead to the company in liquidation being penalised, in tax proceedings, i.e., for the purposes of assessment and penalty, the authority is required to consider the case of the company in liquidation, which is a separate taxable unit. According to Mr. Bhatt, once it was established that the erstwhile managemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the court, who is a Central Government employee. The Tribunal has appreciated the conduct of the official liquidator in not challenging the assessment order, despite there being disputed additions. Thus, according to the Tribunal, on the facts and in the circumstances of the case, there was absence of any guilt or intention on the part of the official liquidator at the time of filing of the return of income. In the conclusion, the Tribunal has found that the official liquidator acted in a bona fide manner and in good faith while filing the return of income of the company in liquidation, and the same necessarily implied absence of any fraud, gross or wilful neglect. As can be seen from the facts which have come on record, the Revenue auth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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