https://www.taxtmi.com/caselaws?id=98191 A general income-tax set-off cannot be used to adjust a refund against a tax demand already proved in the winding up of an insolvent company, because the liquidation scheme under company law and the pari passu rule for unsecured creditors prevail over section 49E of the Income-tax Act, 1922. The text also explains that, once the set-off was found inapplicable, the income-tax authorities acted without jurisdiction in withholding the refund, and the High Court could grant relief under article 226 where the orders showed an error apparent on the face of the record. en-us Fri, 09 Apr 1965 00:00:00 +0530 Wed, 20 Aug 2014 09:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=98191 A general income-tax set-off cannot be used to adjust a refund against a tax demand already proved in the winding up of an insolvent company, because the liquidation scheme under company law and the pari passu rule for unsecured creditors prevail over section 49E of the Income-tax Act, 1922. The text also explains that, once the set-off was found inapplicable, the income-tax authorities acted without jurisdiction in withholding the refund, and the High Court could grant relief under article 226 where the orders showed an error apparent on the face of the record. Case-Laws Companies Law Fri, 09 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=98191