1978 (9) TMI 4

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....RADI, ACTG. C.J.-The appellant in this appeal is the Income-tax Officer, B-Ward, Companies Circle, Ernakulam. Considerable amounts were due to the I.T. department from the Catholic Bank of India Ltd. by way of arrears of income-tax under assessment orders passed against the company for the years 1955-56 to 1959-60. The company was ordered to be wound up as per an order passed by this court dated O....

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....the claim of the department as an ordinary creditor in respect of the full amount of the tax arrears due by the company only on July 27, 1973. In the meantime, on January 28, 1971, the department wrote to the official liquidator requesting that provision should be made also for the further sum of Rs. 23,585 said to be due by way of interest on the arrears of tax payable under s. 220(2) of the I.T.....

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....30(1)(a). So the revenue is not entitled to priority. The application is dismissed." It is against the said order that the ITO has preferred this appeal. In our opinion the appellant is well founded in his contention that the order under appeal proceeds on a misconception that the request made by the department was mainly for priority in the matter of payment. Although a contention had been ....

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....quidator in respect of the amount of interest that is alleged to be payable by the company in liquidation under s. 220(2) of the Act and to have the said claim duly adjudicated upon by the liquidator. Accordingly we direct that the department may file before the liquidator a fresh claim for the amount said to be due by the company in liquidation by way of interest under s. 220(2) of the I.T. Act, ....