https://www.taxtmi.com/caselaws?id=103069 The Supreme Court affirmed the judgment of the Full Bench of the Kerala High Court, holding that Section 178 of the Income-tax Act creates a first charge on the amount set aside for tax liabilities, giving it priority over other debts in the winding-up process. The court dismissed the appeal, emphasizing the legislative intent to secure tax dues promptly and adequately during liquidation. The judgment clarifies that the amount set aside under Section 178 stands outside the winding-up proceedings and is not available for distribution among other creditors. en-us Tue, 19 Mar 1996 00:00:00 +0530 Sat, 09 Mar 2019 11:12:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=103069 The Supreme Court affirmed the judgment of the Full Bench of the Kerala High Court, holding that Section 178 of the Income-tax Act creates a first charge on the amount set aside for tax liabilities, giving it priority over other debts in the winding-up process. The court dismissed the appeal, emphasizing the legislative intent to secure tax dues promptly and adequately during liquidation. The judgment clarifies that the amount set aside under Section 178 stands outside the winding-up proceedings and is not available for distribution among other creditors. Case-Laws Income Tax Tue, 19 Mar 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=103069