Company in
liquidation.
178. (1) Every person—
(a) who is the liquidator of any company which is
being wound up, whether under the orders of a court or otherwise ; or
(b) who has been appointed the receiver of any
assets of a company,
(hereinafter referred to as the liquidator)
shall, within thirty days after he has become such liquidator, give notice of
his appointment as such to the 5[Assessing] Officer who is entitled to assess the income of the company.
(2) The 6[Assessing] Officer shall, after making such inquiries or calling for
such information as he may deem fit, notify to the liquidator within three
months from the date on which he receives notice of the appointment of the
liquidator the amount which, in the opinion of the 6[Assessing] Officer, would be sufficient to
provide for any tax which is then, or is likely thereafter to become, payable
by the company.
7[(3) The liquidator—
(a) shall not, without the leave of the 8[Chief Commissioner or Commissioner], part
with any of the assets of the company or the properties in his hands until he
has been notified by the 9[Assessing] Officer under sub-section (2) ; and
(b) on being so notified, shall set aside an
amount, equal to the amount notified and, until he so sets aside such amount,
shall not part with any of the assets of the company or the properties in his
hands :
Provided that nothing contained in this sub-section
shall debar the liquidator from parting with such assets or properties for the
purpose of the payment of the tax payable by the company or for making any
payment to secured creditors whose debts are entitled under law to priority of
payment over debts due to Government on the date of liquidation or for meeting
such costs and expenses of the winding up of the company as are in the opinion
of the 10[Chief Commissioner or Commissioner] reasonable.
(4) If the
liquidator fails to give the notice in accordance with sub-section (1) or fails
to set aside the amount as required by sub-section (3) or parts with any of the
assets of the company or the properties in his hands in contravention of the
provisions of that sub-section, he shall be personally liable for the payment
of the tax which the company would be liable to pay :
Provided that if the amount of any tax payable by the
company is notified under sub-section (2), the personal liability of the
liquidator under this sub-section shall be to the extent of such amount.]
(5) Where there are
more liquidators than one, the obligations and liabilities attached to the
liquidator under this section shall attach to all the liquidators jointly and
severally.
(6) The provisions
of this section shall have effect notwithstanding anything to the contrary
contained in any other law for the time being in force.