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TMI Blog2002 (9) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... n these tax cases at the instance of the assessee is: "Whether, on the facts and circumstances of the case, there was jurisdiction to assess the company in liquidation for wealth-tax for the assessment years 1984-85 to 1986-87 unless and until the assessing authority established from the books that the assets exceed the liabilities in value?" The assessment years are 1984-85 to 1986-87. The as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n up in appeal on the ground that the Assessing Officer had no jurisdiction to assess a company in liquidation to wealth-tax. The valuation of the properties also was disputed. The Commissioner, after examining the matter in great detail, reduced the value of the properties and directed that consequential relief be granted to the assessee. On further appeal to the Tribunal, the Tribunal held that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. Under the provisions of the Companies Act, a company once registered, remains a legal entity until it is dissolved. When a winding up order is made by the court in relation to a company or when a company resolves to wind up voluntarily, neither the order directing winding up, nor the resolution for voluntary winding-up will have the effect of putting an end to the legal entity. It only sets in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in specie. All companies which are subjected to winding up orders are not insolvent. Winding-up orders can be made not only on the ground that the company is unable to pay its debts, but also on other grounds set out in section 433 of the Companies Act. Even in cases where winding up is directed on the ground that at the time of making the order, the company is unable to pay its debts, it may st ..... X X X X Extracts X X X X X X X X Extracts X X X X
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