https://www.taxtmi.com/caselaws?id=10810 An income-tax penalty imposed after adjudication as insolvent was held not to be a provable debt under section 46(3) of the Presidency Towns Insolvency Act, 1909. The liability to pay a penalty arises only when the penalty is actually imposed, not merely because assessment or related proceedings are pending. As the penalty order was made after the adjudication order, the claim was a post-adjudication liability and could not be proved in insolvency. The official assignee's rejection of the claim was therefore consistent with the statutory scheme. en-us Fri, 14 Nov 2003 00:00:00 +0530 Sat, 25 Jul 2009 11:43:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=10810 An income-tax penalty imposed after adjudication as insolvent was held not to be a provable debt under section 46(3) of the Presidency Towns Insolvency Act, 1909. The liability to pay a penalty arises only when the penalty is actually imposed, not merely because assessment or related proceedings are pending. As the penalty order was made after the adjudication order, the claim was a post-adjudication liability and could not be proved in insolvency. The official assignee's rejection of the claim was therefore consistent with the statutory scheme. Case-Laws Income Tax Fri, 14 Nov 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=10810