TaxTMI 
TaxTMI 
2015 (12) TMI 915
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....liquidation possessed the following properties. Unit Address Particulars of the property Whether sale has taken Sale consideration Whom it was sold Unit 1: No.24 Kolhar, IDA, Bidar, Karnataka - 585401 Land and Buildings and plant and machinery situated at Sy.No.295, 296, 297 in the industrial area within the village limits of Kolhar Hobli, Kasaba Taluk, Bidar Dist. No Income Tax Attachment is thereon NA NA Unit 2: Survey No.111, Cheriyal Village, Sangareddy Mandal, Medak District, Andhra Pradesh Land & Buildings and plant and machinery situated at Sy.No.111/E Sold by IFCI Ltd under SARFAESI Act, 2002 3.18 Crores M/s.Reddy Pharmaceuticals Ltd., New Delhi. Unit 3: Survey No.10 & 10/E2/A2, Goddapotharam Village, Jinnaram Mandal, Medak Dist, Andhra Pradesh. Land & Building and plant and machinery Sy.No.10 and 10/E2/A2 Sold by IFCI Ltd under SARFAESI Act, 2002 3.41 crores M/s.Sare Constructions Secunds Ltd., 4. It is stated, the Official Liquidator sent letter dated 11.7.2014 to IFCI Limited asking for information about the conduct of sale and sale proceeds. Similarly, letter dated 11.7.2014 was sent to the Dy. Commissioner ....
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....2 of the Income Tax, 1961 in the name of the Company on 27.12.2011 specifying that the total sum of Rs. 48.69 crores was recoverable from the defaulter. Consequently, notice under Rule 2 of the second schedule of the I.T. Act, in the Form Number ITCP-1 vide F.N.AAACJ5643HY/TRO/RCR/2011-12 dated 4.1.2012 was issued. The properties attached are: 1. Plot No.24 (A & B) having an area of 8079 sq. mts at Kolhar Industrial Area, Bidar District. 2. Sy.Nos.10 and 10/E2/A2, Gaddapothram, Jinnaram Mandal, Medak District (Unit-II). 3. Sy. No.111, Cheriyal village, Sanga Reddy, Mandal, Medak District (Unit-II). 10. It is stated, the total demand outstanding for the years 2001-02, 2002-03, 2005-06, 2007-08, 2008-09, 2009-10 is to the tune of Rs. 71.23 crores excluding the mandatory interest. The attachment is prior to the order of winding up. Therefore, the Revenue may be permitted to auction the attached properties. It is stated, the winding up proceedings will not bar or restrict the Revenue from recovering the amount due to the Government i.e., the respondents herein. The Revenue cannot be restrained from recovering the amount since right of Revenue is preserved ....
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....Supreme Court reported in (1996) 219 ITR page 498 (SC). 13. I have carefully considered the submissions made by the learned counsel for the parties. 14. It is relevant to note, M/s.Jupiter Bioscience Limited (in liquidation) was ordered to be wound up by order dated 10.1.2014. Thereafter, the Official Liquidator attached to this court has been appointed as Liquidator of the company (in liquidation). The Official Liquidator has received information that the company possessed the following properties:- Unit Address Particulars of the property Whether sale has taken Sale consideration Whom it was sold Unit 1: No.24 Kolhar, IDA, Bidar, Karnataka - 585401 Land and Buildings and plant and machinery situated at Sy.No.295, 296, 297 in the industrial area within the village limits of Kolhar Hobli, Kasaba Taluk, Bidar Dist. No Income Tax Attachment is thereon NA NA Unit 2: Survey No.111, Cheriyal Village, Sangareddy Mandal, Medak District, Andhra Pradesh Land & Buildings and plant and machinery situated at Sy.No.111/E Sold by IFCI Ltd under SARFAESI Act, 2002 3.18 Crores M/s.Reddy Pharmaceuticals Ltd., New Delhi. Unit 3: Survey No.10 & 10....
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....ty in section 530 of the Companies Act although its effect no doubt is that the amount set aside under sub-section (3) thereof has first to be applied to the satisfaction of the tax liability and in that sense the tax liability gets priority over the other debts of the company in the same way as a secured creditor who stands outside the winding up, or whose security is redeemed under sub-section (4) of section 47 of the Provincial Insolvency Act r/w section 529 of the Companies Act, gets priority to the extent of the value of his security. But, although sub-section (3) of section 178 of the Income-Tax Act, which speaks of the liquidator making 'payment to secured creditors whose debts are entitled under law to priority of payment over debts due to Government' - the only payment I can think of by the liquidator to a secured creditor who has not relinquished his security is a payment under sub-section (4) of section 47 of the Provincial Insolvency Act, or to a creditor who, although he has not relinquished his security, has agreed to the liquidator selling the property free of his incumbrance on condition of his being given the same charge over the sale proceeds - seems to regard the....
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....ove decision, observed thus : "...... we cannot ignore the provision in sub-section (2) of section 178 that the amount to be notified is not only the amount for which preference is given u/s 530 of the Companies Act, 1956, but the entirety of the income-tax dues of the company including that which may thereafter become payable. When we read this provision with the provision in subsection (4) of section 178 of the Act which makes the liquidator personally liable for the payment of the tax which the company would be liable to pay if the liquidator failed to give notice in accordance with sub-section (1) of section 178, it appears to us that the provision in section 178(3) imports much more than what was contended by counsel for the appellant. This is the view that has been taken in the judgment under appeal which, if we may say with great respect, deals with all aspects in a few sentences. We respectfully agree with the view taken by the learned Judge." Approving the above dicta, the Full Bench has further laid stress on the crucial words occurring in section 178(2), 178(3) (b) of the Income-Tax Act, which behoves the official liquidator "to set aide the amount" equ....