LAWS(MAD)-1970-3-13

M MARIAPPA GOUNDER Vs. INCOME TAX OFFICER

Decided On March 24, 1970
M. MARIAPPA GOUNDER Appellant
V/S
INCOME TAX OFFICER, COMPANIES CICRLE, TIRUCHIRAPALLI Respondents

JUDGEMENT

(1.) THE petitioner.. herein seeks a writ of certiorari to quash the order dated June 8, 1966, passed by the Income-tax Officer, Companies Circle, Tiruchirapalli-1, holding the petitioner personally liable to pay the tax of Rs. 10, 566.45 due by the company, Hindu Bank Karur Ltd., of which the petitioner is a liquidator. THE said company went into voluntary liquidation in the year 1962 and the petitioner was appointed on October 28, 1963, as liquidator in the said voluntary windi rig up. On November 17, 1963, the petitioner, in his capacity as liquidator of the company, submitted to the Income-tax Officer a return enclosing the balance-sheet and profit and loss account for the assessment year 1963-64 specifically stating therein that the bank had transferred its assets and liabilities to the Syndicate Bank, Udipi, as, on August 26, 1962.

(2.) THE said letter made it clear that he is addressing the Income-tax Officer in his capacity as liquidator. On December 13, 1963, also he addressed another letterto the same Income-tax Officer posting him with all the details of discontinuance of the banking business and the transfer of assets and liabilities to the Syndicate Bank for a consideration of Rs. 3, 59, 010 and that there has been a loss of Rs. 95, 694 as h(been shown in the profit and loss account already sent. In that letter the Income-tax Officer was told that there are no income-tax arrears, that income-tax advance and the contingent liability for income-tax were taken over by the Syndicate Bank and that in view of the fact that sufficient provision to meet the contingent liability of income-tax having been made already, he is proposing to distribute the funds to the shareholders. It appears that the petitioner also wrote letters to the Income-tax Officer on January 4, 1964, and February 7, 1965, as to the stage of the winding up proceedings. THE assessment order in relation to the assessment year 1963-64 was passed on January 19, 1965, accepting the petitioner's return submitted in his capacity as liquidator resulting in no tax liability in view of the loss shown in the return. But the said assessment was, however, revised by the Commissioner of Income-tax on April 7, 1966, and this resulted in the tax liability to the extent of Rs. 10, 566.45.