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TMI Blog1999 (4) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... t in respect of which he has ceased to be the "authorised controller" are the questions which arise for consideration in these references. The Tamil Nadu Textile Corporation Limited was appointed as "authorised controller" of a company known as Cambodia Mills Ltd. with effect from October 22, 1969, it ceased to be the authorised controller from April 1, 1974, when all the assets of the company came to be vested in the Central Government and thereafter in the National Textile Corporation under the provisions of the Sick Textile Undertakings (Nationalisation) Act, 1974. During the period, the authorised controller was in charge of the industrial undertaking that was owned by the company, Cambodia Mills Ltd. Returns were filed under the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for Cambodia Mills Ltd., is not either 'owner' or 'Successor' to the business of the said mills ? (3) Whether the Appellate Tribunal's view that the manager appointed by the statute has not been made specifically liable as a representative assessee is correct ? (4) Whether, on the facts and circumstances of the case, the Tribunal's view that the 'manager' appointed by the statute had not been made specifically liable as representative-assessee and that section l60(1)(iii) of the Income-tax Act, 1961, had no application to the case is correct in law ? (5) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the 'authorised controller' cannot be made liable either as 'represen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntroller' though such assessment related to periods for which the authorised controller was managing the business of Cambodia Mills Ltd. ?" The statement of case submitted by the Tribunal shows that the undertaking, in respect of which the Tamil Nadu Textile Corporation Limited was appointed as an authorised controller under section 18A of the Industries (Development and Regulation) Act, was owned by the company Cambodia Mills Ltd. The undertaking was the textile mill at Coimbatore. What came to be taken over was not the company as such, nor the ownership of the assets which belonged to the company, but only the right of management. The company continued to exist, and the properties which belonged to the company remained the properties of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y meant that instead of directors representing the company, the authorised controller represented the company in relation to the dealings of the company with the outside world including the assessment of the income of the company under the Income-tax Act. Even as the board of directors of the company cannot be regarded as the representative assessees for the company, when the company itself is being assessed, so also the authorised controller did not, and could not become the representative assessee for Cambodia Mills Limited. Section 18B of the Industries (Development and Regulation) Act, 1951, sets out the effect of the notified order under section 18A. The persons incharge of the management, including those holding office as managers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntinues to be the company and all proceedings under the Income-tax Act are required to be taken against the company, and not against the authorised controller, except to the extent permissible under law by reason of the fact that he is for the time being a person competent to represent the company. The company has its own profit and loss account, its balance-sheet, and even during the period when the company was under the control of the authorised controller, the annual accounts of the company were being regularly drawn up, and some were being placed before the annual general meeting of the shareholders of the company, which approved and adopted the accounts. In the statement of the case, the dates on which the general meetings were held, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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