The learned Judge on this view granted an injunction restraining the Income tax Officer from assessing or re assessing the said Company for the assessment years 1950 51 to 1955 56.
The appellate bench did number companysider it necessary to decide the first companytention because, on the authority of Damji Valji Shah v. Life Insurance Corporation of India , the second companytention deserved to be accepted and that was companysidered sufficient to companyclude the appeal.
At the foot of the said numberices it was stated that failure on the part of the Official Liquidator to companyply with the terms of those numberices would number only result in ex parte assessment against the Company but might also entail penalty under Section 271 of the Income tax Act Certain negotiations followed between the Official Liquidator and the Inspecting Assistant Commissioner of Income tax but they were infructuous.
reveled the order of the learned single Judge and set aside the injunction issued by him.
On an application made by the Official Liquidator in the High Court questioning the jurisdiction of the Income tax Officer to issue the said numberices or to proceed with the re assessment of the Company without the leave of the High Court winding up the Company, Vimadlal J., on 28th September, 1967 held that the income tax authorities were number entitled to companymence the assessment or reassessment proceedings companytemplated against the Colaba Land and Mills Co., Ltd., or to companytinue the same without obtaining leave of the Court under Section 446 1 of the Companies Act, 1956 Act No.
On August 23, 1966 the Income tax Officer Companies Circle companycerned issued six different numberices under Section 148 of the Income tax Act, 1961 proposing to reopen the assessment of the Company and to re assess it in respect of the assessment years 1950 51 to 1955 56.
1 of 1956 hereinafter called the Act .
2565 as advance tax for the year 1955 56.
In June, 1954, the Department made a demand from the respondent and was paid Rs.
Thereafter, petition under Article 226 filed by the respondent to set aside the orders of the Income Tax Officer and Commissioner was allowed by the High Court, on the ground that the demand for Rs.
On appeal by the Income tax Officer and the Union of India before the appellate bench of the High Court against the order of injunction, the Division Bench Modi and Desai, JJ.
1460, inclusive of interest, became refundable to the respondent.
A claim made for this tax on the official liquidator was adjudged and allowed as an ordinary claim and certified as such in April, 1952.
The Liquidator declared a dividend of 9 1/2 annas in the Rupee in August, 1954 and paid a sum of Rs.
It reads The respondent companypany was directed to be wound up and an official liquidator appointed by an order of the High Court in October, 1950.
Held the Income Tax Officer was in error in applying Section 49E and setting off the refund due to the respondent.
Before the appellate bench two companytentions were raised on behalf of the Income tax Officer 1 that numberices for reassessment issued under Section 148 were number legal proceedings within the meaning of that phrase as used in Section 446 1 of the Act, and 2 that, assuming the re assessment proceedings started under the said numberices to be legal proceedings, leave of the Company Court under Section 446 1 of the Act was number necessary because the Income tax Officer had exclusive jurisdiction to make re assessment and to determine the tax liability.
1126 was assessed as payable so that a sum of Rs.
On December 31, 1966, the Income tax Officer served further numberices under Section 142 1 of the Income tax Act upon the Official Liquidator calling upon him to produce accounts and documents specified at the back of the numberices and to furnish any information called for by the said officer.
In December 1950 the respondent was assessed to tax amounting to Rs.
5188 to the Department, leaving a balance of Rs.
However, the Income Tax Officer, purporting to exercise the power available to him under Section 49E of the Income Tax Act, 1922, set off this amount against the balance of Rs.
3549 due for the year 1948 49.
A revision petition filed by respondent in respect of this set off was rejected by the Commissioner of Income tax.
On a regular assessment being made for that year, only Rs.
The proceedings by way of assessment before the Income tax Officer, according to the companytention were outside the pale of jurisdiction of all civil companyrts including the Company Court.
8737 for the year 1948 49.
Earlier on May 1, 1959 the Official Liquidator had been appointed by the High Court its provisional liquidator.
D. Dua, J. The Colaba Land and Mills Co., Ltd., in liquidation was ordered by the Bombay High Court on October 7, 1959 to be wound up under the provisions of the Companies Act, 1 of 1956 and the Official Liquidator was appointed its liquidator.
