COMMISSIONER OF INCOME TAX RECOVERY NEW DELHI Vs. OFFICIAL LIQUIDATOR MESSRS GOLCHA PROPERTIES PVT LTD

JUDGEMENT

(1.) MESSERS. Golcha Properties (Private) Limited, (In Liquidation) briefly 'the Company' was on 10 6-1968 by this Court ordered to be wound up in Company Petitions No. 9 and 10 of 1966. The Official Liquidator attached to this Court was appointed Liquidator of the Company. After the passing of that order the Official Liquidator is carrying on the business of the Company for the beneficial winding up of it.

(2.) THIS application has been filed by the Commissioner of Income Tax (Recovery), New Delhi for grant of the leave of the Court (to appeal) against the Company for the recovery of Rs. 31,31,620/- in respect of the alleged liability of the Company under the Income Tax Act, 1961, briefly 'the Act' for the assessment years 1969-70, 1970-71, 1971-72 and 1972-73. According to the application, tax for the assessment year 1969-70 was assessed as Rs. 5,91,925/-, for the assessment year 1970 71 as Rs. 10,38,374/- and for the assessment year 1971-72 as Rs. 11,94,274/- out of this latter amount a sum of Rs. 5,20,722/- has been paid as advance tax and, therefore, only an amount of Rs. 6,73,552/- remains to be paid in respect of assessment year 1971 72. For the assessment year 1972 73 the allegation of the applicant is that the Company upon the basis of the return filed on its behalf is liable to pay a sum of Rs. 7,41,375/ -. In other words there is no assessment order for the assessment year J 972-73. The applicant has further claimed interest for certain period on the assessments for the years 1969-70 and 1970-71.

(3.) THE instruction relied upon by Mr. Mathur was issued under sec. 119 of the Act the relevant portion of which reads as follows: "119. Instructions to subordinate authorities. (1) THE Board may, from time to time, issue such orders, instructions and directions to other income-tax authorities as it may deem fit for the proper administration of this Act, and such authorities and all other persons employed in the execution of this Act shall observe and follow such orders, instructions and directions of the Board: Provided that no such orders, instructions of directions shall be issued - (a) so as to require any income-tax authority to make a particular assessment or to dispose of a particular case in a particular manner; or (b) so as to interfere with the discretion of the Appellate Assistant Commissioner in the exercise of his appellate functions. . . . . . . . . . . . . " THE word Board' has been defined in sec. 2 (12) of 'the Act' as follows: " (2) Definitions.- In this Act, unless the context otherwise requires - . . . . . . . . . . . . . . . . . . . . . . . . . . (12) "board" means the Central Board of Director Taxes constituted under the Central Board of Revenue Act, 1963; . . . . . . . . . . . . . . . . . . . . . . . . . . . . . "