https://www.taxtmi.com/caselaws?id=99453 Tax liability arising from income or capital gains generated by a liquidator during a proper winding up is not a contingent debt existing at the date of winding up and does not qualify as a preferential claim under section 178 of the Income-tax Act, a priority debt under section 530(1)(a) of the Companies Act, or an admissible contingent debt under section 528. However, where the tax results from the liquidator's realisation of assets in the course of liquidation, it is treated as a cost, charge or expense properly incurred in the winding up and is payable in priority out of the company's assets before distribution to unsecured creditors. en-us Wed, 21 Jul 1976 00:00:00 +0530 Fri, 27 Jan 2012 13:28:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99453 Tax liability arising from income or capital gains generated by a liquidator during a proper winding up is not a contingent debt existing at the date of winding up and does not qualify as a preferential claim under section 178 of the Income-tax Act, a priority debt under section 530(1)(a) of the Companies Act, or an admissible contingent debt under section 528. However, where the tax results from the liquidator's realisation of assets in the course of liquidation, it is treated as a cost, charge or expense properly incurred in the winding up and is payable in priority out of the company's assets before distribution to unsecured creditors. Case-Laws Companies Law Wed, 21 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99453