1970 (3) TMI 8

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.... year 1962, and the petitioner was appointed on October 28, 1963, as liquidator in the said voluntary winding. On November 17, 1963, the petitioner in his capacity as liquidator of the company submitted to the Income-tax Officer a return enclosing the balance-sheet and profit and loss account for the assessment year 1963-64, specifically stating therein that the bank had transferred its assets and liabilities to the Syndicate Bank, Udipi, as on August 26, 1962. The said letter made it clear that he is addressing the Income-tax Officer in his capacity as liquidator. On December 13, 1963, also, he addressed another letter to the same Income-tax Officer posting him with all the details of discontinuance of the banking business and the transfer....

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....ly as a result of the revision of the assessment by the Commissioner of Income-tax on April 7, 1966, while the liquidator was appointed in October, 1962. It is true under section 178(1) to (3) before its amendment, the petitioner is bound, within 30 days of his appointment as liquidator to give notice to the Income-tax Officer concerned of such appointment who, in his turn, is bound, within 3 months to intimate to the liquidator the estimated amount of tax liability of the company. The liquidator has to set aside an amount to meet the tax liability and he should not part with any of the assets except for paying the secured creditors entitled to priority over Government dues. Sub-section (4) of section 178 provided that if the official liqui....

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....his case the liquidator has, by his letter dated November 17, 1963, sent a return along with the balance-sheet and profit and loss account. In that letter it is made clear that he is sending the return on behalf of the company in liquidation and in his capacity as a liquidator. This letter dated November 17, I963, is in substantial compliance with section 178(1) of the Act. It is not possible for us to accept the contention advanced on behalf of the revenue that the letter dated November 17, 1963, sent by the petitioner cannot be construed as a notice of his appointment as liquidator. We find there is no form prescribed for the purpose and it is open to the petitioner to send a notice in any form provided he communicates the fact of his app....