1991 (7) TMI 257

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n Mathew, J. - For the proper winding up of Wandoor Jupiter Chits (P) Ltd. (in liquidation), the liquidator had to incur various expenses. He is incurring such expenses in respect of the work of other companies also. For the assessment year 1982-83, the liquidator filed a return of income showing a total income of Rs. 15,820. The only income is the interest earned on the funds invested in fixed....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s). For the years- 1987-88 and 1988-89, the Assessing Officer allowed only 10% of the interest income as expenses admissible. In appeal, the Commissioner of Income-tax (Appeals) granted substantial relief. But the appeal preferred by the liquidator before the Appellate Tribunal is pending orders. In connection with these income-tax assessments, the liquidator had engaged the services of Shri....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... under section 449 of the Companies Act when this court orders winding up of that company. He is an officer subject to the control of this, court. His major income is the interest earned on investments made as provided under rule 293 of the Companies (Court) Rules. The liquidator will have to comply with various orders passed by this court for realising the debts due to the company by filing cases....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s per the orders of this court. Since the liquidator is incurring unnecessary expenditure for getting this fact admitted by the income-tax authorities, it has become necessary for this court to give a declaration to the effect that these expenses are expenses in the winding up administration of the company. Under these circumstances, it is declared that all the expenses incurred by the liqui....