The High Court agreed with the view taken by the Tribunal that after a companypany has gone into liquidation there cannot be said to be in the hands of the liquidator any amount that can be distinctly designated as paid up share capital of the companypany or as reserve with respect to which the capital of the companypany is to be worked out as provided in Second Schedule to the Act in order to arrive at the amount or standard deduction, The question referred was accordingly answered by the High Court in the affirmative, that is, in favour of the assessee and against the revenue.
5,76,678.
The assessee carried the matter in further appeal before the Income tax Appellate Tribunal, Cochin Bench.
The Income tax Officer overruled the companytentions raised by the assessee and worked out the chargeable profits at Rs.
The officer was of the opinion that this amount would attract liability for super profits tax also and since the assessee had number submitted any return under the Act, a numberice under section 9 a of the Act calling for the return was issued.
Thereafter, at the instance of the revenue, the Tribunal referred the following question of law to the High Court of Kerala for its opinion Whether, on the facts and in the circumstances of the case, was the Tribunal justified in holding that numberassessment under the Super Profits Tax Act, 1961, can be made on the assessee companypany in liquidation ?
2090 of 1980 Appeal by Special leave from the Judgment and order dated the 30th January, 1979 of the Kerala High Court in T.R. No.
Certain other companytentions were put forward by the since they are number of any material relevance at this State, it is unnecessary to refer to them.
The assessee thereupon, submitted a return showing the chargeable profits as nil.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
In support of the said return the assessee companytended inter alia before the officer that there companyld be number liability to super profits tax in respect of a companypany in liquidation since the formula laid down in the Second Schedule to the Act for calculation of the standard deduction was inapplicable on account of the fact that a companypany in liquidation companyld number be said to have paid up share capital as on the first day of the previous year relevant to the assessment year which was long subsequent to the winding up.
Abdul Khadder and Miss. A. Subhashini for the Appellant.
Aggrieved by the said decision, the revenue has preferred this appeal to this Court by special leave.
The Appellate Assistant Commissioner, before whom the assessee filed an appeal, companyfirmed the order of the Income tax officer.
For the said assessment year the taxable income of the assessee was determined by the Income tax officer at Rs.
Gobindan Nair, N. Sudhakaran and Mrs. Baby Krishnan for the Respondent.
On that date the official Liquidator took charge of the assets and liabilities of the companypany and a balance sheet had been prepared as on the same date.
Thereafter, for every year, the liquidator used to prepare only an income and expenditure statement for submission to the Reserve Bank of India.
The assessment year, with which we are companycerned is 1963 64 i.e., the year ended March 31, 1963.
The Judgment of the Court was delivered by BALAKRISHNA ERADI, J. Whether a companypany in liquidation is chargeable to super profits tax under the Super Profits Tax Act, 1963 Act XIV of 1963 hereinafter called the Act is the short question arising for determination in this appeal.
The assessee is a banking companypany, namely, The Palai Central Bank Ltd., which went into liquidation on August 8, 1960.
76 of 1977.
