2009 (9) TMI 228

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....holding that in the case of the companies, which are under liquidation, section 104 of the Income-tax Act would have no application and consequently erred in quashing the proceedings under section 104 of the Income-tax Act initiated in the case of the assessee-company?" 2. Assessment pertaining to the assessment year 1979-80 was completed on June 23, 1982. During the course of the assessment it was found that the assessee had not declared the dividend for the year ending on March 31, 1979. A notice was issued under section 104 of the Income-tax Act (for short "the Act"). The assessee replied to the notice stating that the company is under liquidation and the official liquidator is managing the affairs of the company for the benefit of th....

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....was not liable to pay any interest under section 217(1A) of the said Act ?" 6. For the assessment years 1972-73 to 1974-75 of the assessee, the reference of the questions of law made by the Tribunal was as under: "1. Whether the Appellate Tribunal was right in law in holding that the provisions of section 220(1) of the Income-tax Act, 1961, were inoperative in the case of a company which was in liquidation by the orders of the winding-up court? 2. Whether the Appellate Tribunal was right in law in holding that interest under section 220(2) of the Income-tax Act, 1961, was not chargeable in the case of the assessee-company?" 7. The dispute pertaining to the assessment years 1972-73 to 1974-75 came to be decided in the reference t....

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....was accordingly made. The court dealing with such a situation observed as under (page 739): "Mr. Surolia, learned counsel for the Revenue, was unable to show any later decision of the hon'ble Supreme Court taking a different view from the view already taken in the cases of Kondaskar (S. V.), Official Liquidator and Official Liquidators of the Coloba Land and Mills Co. Ltd. v. Deshpande (V. M.) [1972] 83 ITR 685 (SC) and Union of India v. India Fisheries (P.) Ltd. [1965] 57 ITR 331. The Tribunal has decided the case by placing reliance on the above-mentioned two Supreme Court decisions and no argument has been raised by learned counsel for the Revenue to show that the Tribunal in any manner committed any mistake in taking the above view. ....