Income Tax cannot be recovered during Liquidation Process under IBC

Leo Edibles & Fats Limited Vs TRO (Central) (Andhra Pradesh HC) Section 178 of the Act of 1961 is titled ‘Company in liquidation’. Under sub-section (1) thereof, the liquidator of a company which is being wound up, or a person who is appointed as a Receiver of the assets of such company has to give notice of his appointment as such to the Assessing Officer of the said company. Sub-section (2) provides that the Assessing Officer shall make inquiries and notify the liquidator within three months from the date on which he receives the notice of appointment of the liquidator, the amount wh...