https://www.taxtmi.com/caselaws?id=15393 The court ruled that capital gains tax does not hold preferential rights over other secured creditors in a company under liquidation. The court clarified that tax dues under section 178 of the Income-tax Act have precedence only over tax assessed under section 178(2) and not over other secured creditors' claims under section 529A of the Companies Act. The Department of Income-tax's claim for capital gains tax was rejected, affirming the workers' entitlement to interest payments. The court allowed the official liquidator's report with modifications to ensure the workers' rights to the interest as per the court's previous order. en-us Fri, 28 Aug 1998 00:00:00 +0530 Tue, 28 Feb 2012 17:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15393 The court ruled that capital gains tax does not hold preferential rights over other secured creditors in a company under liquidation. The court clarified that tax dues under section 178 of the Income-tax Act have precedence only over tax assessed under section 178(2) and not over other secured creditors' claims under section 529A of the Companies Act. The Department of Income-tax's claim for capital gains tax was rejected, affirming the workers' entitlement to interest payments. The court allowed the official liquidator's report with modifications to ensure the workers' rights to the interest as per the court's previous order. Case-Laws Income Tax Fri, 28 Aug 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15393