Law:

Section:

Section 226 of the Income-tax Act, 1961 (Corresponding to section 46(5A) of the Indian Income-Tax Act, 1922) - Collection and recovery of tax - Other modes of recovery - Assessment years 1952-53 to 1956-57 - Whether an official liquidator has similar rights and duties like receiver appointed by Court - Held, yes - Whether, therefore, initiation of proceedings under section 46(5A) of 1922 Act against official liquidator without leave of court would amount to contempt of court - Held, yes FACTS The company K was ordered to be wound up by the court and the official liquidator was directed to proceed with the administration of the estate in accordance with the provisions of the Indian Companies Act, 1956. From that date, under section 456 of the Companies Act, all the property and effects of the company were deemed to be in the custody of the court. The ITO without obtaining the leave of the court before starting proceedings for attachment of the assets in the custody of the court in the hands of the official liquidator, issued a notice under section 46, clause (5A) of 1922 Act, on the official liquidator. A notice was thus issued to the ITO to show cause, why he should not be committed for contempt of court for having started a legal proceeding against the official liquidator in a pending winding up case under the Companies Act after the order for winding up was passed, without the leave of the court. HELD An official liquidator like a receiver appointed by the court is an officer of the court and he, has similar rights and duties as a receiver. Any initiation of a legal proceeding against him without the leave of the court amounts to contempt. The action of the opposite party in issuing notice, under section 46(5A) of 1922 Act, to the official liquidator is an act which amounts to contempt of this court. But the opposite party, at the very earliest opportunity, as soon as he received the notice of contempt, by his letter informed the Official Liquidator that he thereby withdrew the notice of attachment issued under section 46(5A) of 1922 Act and filed a counter-affidavit showing cause to the notice issued by this court in which he offered an unconditional and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492