COMMISSIONER OF INCOME TAX Vs. GOLECHA PROPERTIES (P.) LTD.

JUDGEMENT

(1.) THE revenue has filed an application under Section 256(2) of the Income Tax Act seeking direction to the Income Tax Appellate Tribunal (for short the Tribunal) to refer the following substantial question of law for opinion of the Court:

(2.) ASSESSMENT pertaining to the assessment year 1979 -80 was completed on 23 -6 -1982. During the course of the assessment it was found that the assessee had not declared the dividend for the year ending on 31 -3 -1979. A notice was issued under Section 104 of the Income Tax Act (for short the Act). The assessee replied the notice stating that the company is under liquidation and the Official Liquidator is managing the affairs of the company for the benefits of the creditors. The assessing authority did not agree with the contention of the assessee and created the liability of payment of tax vide order dated 20 -3 -1984. The assessee preferred an appeal before the Commissioner (Appeals), which came to be rejected. The assessee further preferred appeal before the Tribunal. The Tribunal held that the provisions of the Act are not applicable to the Official Liquidator and set aside the orders of the lower Courts.

(3.) WE have heard learned Counsel for the parties and perused the record.