ASSISTANT COMMISSIONER OF INCOME TAX Vs. OFFICIAL LIQUIDATOR

JUDGEMENT

(1.) THE respondent company is in liquidation and official liquidator has been appointed on a winding -up order passed in the petition filed by the RBI. It seems that the respondent company is in some liability qua IT Department. In the search and seizure, conducted by the IT Department, certain documents were seized which included FAR as well. Since the company is in liquidation, IT Department filed CA No. 600 of 2002 seeking permission from the Company Judge to claims are yet to be invited by the official liquidator and the amount is lying in the FD account, no effective order could be passed and the FDR shall be renewed by the bank on its maturity until further order of this Court.

(2.) CHALLENGING that order, the present appeal is preferred by the IT Department. We are informed that in the year 2005, official liquidator has invited the claims, but IT Department did not prefer any claims. On the other hand, learned counsel for the income -tax (Department) refers to the provisions of s. 178 of the IT Act and submits that as per the said provisions, the obligation of the financial liquidator has to inform the IT Department before selling any of the properties if the company is in liquidation. It is also stated in the rejoinder filed by the IT Department that, with regard to, the aforesaid communication addressed by the IT Department to the official liquidator that the IT Department has alleged its claim with the official liquidator. Therefore, aforesaid letters would be treated as claims with the official liquidator and official liquidator shall proceed further accordingly.