Case Law Details
Mahalakshmi Textile Mills Limited Vs DCIT (Madras High court)
Madras High Court held that as the petitioner company is wound up, however, intention of petitioner for clearing the pending dues is sincere. Writ petition is allowed permitting the petitioner to pay pending dues in equal installments.
Facts- The petitioner company had been wound up by orders in C.P.No.68 of 1985. The official liquidator had been appointed to take charge of the affairs of the company and as a result any legal proceeding initiated without impleading the official liquidator was non-est in the eye of law. Meanwhile, the respondent had passed an assessment order on 07.10.2022 demanding payment of Rs. 1,33,45,480/- u/s. 143(1)(a) of the Income Tax Act, 1961, for the assessment year 2021-2022, which is payable on or before 14.10.2022.
The petitioner, who was not in a position to repay this huge amount, had sent a representation dated 20.12.2022 requesting the respondent to permit him to pay the said sum in easy installments. However, respondent directed to pay sum in three instalments. The same was totally unworkable as far as the petitioner is concerned. Since the respondent was reluctant to accept the same, the petitioner has come forward with the above writ petition.
Conclusion- Admittedly, the petitioner company has been wound up and the entire affairs of the company now rest with the official liquidator. The petitioner company does not have any property, which can be easily sold to clear the dues of the respondent herein. However, the intent of the petitioner appears to be sincere despite the odds stacked against them.
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