Posted On by &filed under Judgements.


Income Tax Appellate Tribunal – Kolkata
United Provinces Electricity … vs Ito on 1 January, 1800
Equivalent citations: (1987) 29 TTJ Cal 380


ORDER OF ASSESSMENT–Non determination of tax payable.

Ratio :

Non computation of tax payable by assessee in assessment order could not invalidate the assessment order.

Held :

The non-computation of tax payable by the assessee in the assessment order would not invalidate the assessment order as tax payable has been determined by the assessing officer in Form No. ITNS-150 under the signature of the assessing officer which has to be taken as part and parcel of the order. Further, deficiency neither invalidates the order nor justifies the appellant’s contention that no tax was payable. Further, the assessment order communicated to the appellant was accompanied by a demand notice under section 156 wherein the computation of tax payable has been incorporated.

Application :

Also to current assessment years.

Income Tax Act 1961 s.143

Assessment–RETURN–Filed by liquidator.

Ratio :

Return filed by liquidator cannot be said to be invalid therefore assessment made on the basis thereof was valid in law.

Held :

The liquidator appointed in a company’s winding up is an agent of the company. The return of income thus furnished by him cannot be said to be invalid in law. Even otherwise, the assessing officer was competent to frame the assessment since the said invalidity was not such as to oust his jurisdiction.–Hari Prasad Jayantilal & Co. v. V. S. Gupta, ITO & Anr. (1966) 59 ITR 794 (SC) relied on.

Application :

Also to current assessment years.

Income Tax Act 1961 s.143

Assessment–RETURN–Filed by liquidator.

Ratio & Held :

Return filed by liquidator even if invalid the said invalidity was not such as to oust assessing officer’s jurisdiction to make an assessment.

Application :

Also to current assessment years.

Income Tax Act 1961 s.143

Company–COMPANY IN LIQUIDATION–Assessing officer’s jurisdiction.

Ratio :

Assessing officer has complete jurisdiction to frame assessment and reassessment in accordance with the provisions of Income Tax Act in respect of a company in liquidation and his jurisdiction is not at all controlled by Companies Act.

Held :

Leave of court under section 446(1) of the Companies Act is not necessary to commence or continue assessment or reassessment proceedings in respect of a company ordered to be wound up by the court. Thus, the Income Tax Officer has complete jurisdiction to frame assessment and reassessment in accordance with the provisions of the Income Tax Act and his jurisdiction is not at all controlled by the Companies Act, 1956.

Case Law Analysis :

S. V. Kondaskar, Official Liquidator v. V. M. Deshpande, ITO (1972) 83 ITR 685 (SC) followed.

Application :

Also to current assessment years.

A. Y. :

1981-82

Dt. Judg. :

3-6-1987

Income Tax Act 1961 s.143

Liability in special cases–REPRESENTATIVE ASSESSEE–Liquidator of a company.

Ratio & Held :

Liquidator of a company is representative assessee within the meaning of section 160.

Application :

Also to current assessment years.

Income Tax Act 1961 s.160

Income from other sources–DEDUCTION UNDER S. 57(iii)–Liquidation expenses.

Ratio :

Liquidation expenses cannot be assumed to be deductible under section 57 entirely.

Held :

Cost of liquidation is, no doubt, payable out of the costs of assets and expenses are legally deductible under section 57. The assessee did not point out as to which item or cost has been improperly disallowed by the Commissioner. Therefore, the Commissioner (Appeals) order was sustainable.

Application :

Also to current assessment years.

Income Tax Act 1961 s.57

Return–VALIDITY–Return filed by liquidator.

Ratio & Held:

Return filed by liquidator was not non est in law inasmuch as the liquidator was an agent of the company and, therefore, a representative assessee within the meaning of section 160.

Application:

Also to current assessment years.

Income Tax Act 1961 s.139(1)

Income Tax Act 1961 s.160


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