https://www.taxtmi.com/caselaws?id=38493 Income-tax arising from the realisation of company assets during liquidation was not a contingent debt provable under the Companies Act because, on the winding-up date, no existing obligation could mature on a future uncertain event; the liability arose only when income and capital gains were earned during the liquidation process. Section 178 of the Income-tax Act was inapplicable because the tax related to post-winding-up income and the statutory notice procedure for pre-winding-up income had not been invoked. The demand also did not fall within section 530(1)(a) as it was not due within the statutory twelve-month period before winding up. However, tax incurred as a consequence of the liquidator's proper realisation of assets formed part of the costs, charges and expenses of winding up and had priority over unsecured creditors. en-us Wed, 21 Jul 1976 00:00:00 +0530 Tue, 06 Apr 2010 16:57:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38493 Income-tax arising from the realisation of company assets during liquidation was not a contingent debt provable under the Companies Act because, on the winding-up date, no existing obligation could mature on a future uncertain event; the liability arose only when income and capital gains were earned during the liquidation process. Section 178 of the Income-tax Act was inapplicable because the tax related to post-winding-up income and the statutory notice procedure for pre-winding-up income had not been invoked. The demand also did not fall within section 530(1)(a) as it was not due within the statutory twelve-month period before winding up. However, tax incurred as a consequence of the liquidator's proper realisation of assets formed part of the costs, charges and expenses of winding up and had priority over unsecured creditors. Case-Laws Income Tax Wed, 21 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38493