V. Income Tax Department

COAP/59/2014

AI Insights

The case involves the proposed dissolution of M/s. Sohanmal Golcha Private Limited, a company that was ordered to be wound up in 1971. The Official Liquidator sought permission to invite objections to the dissolution, noting that the company had no fixed assets and only a small amount of money in its account, which was the result of payments for partly paid-up shares. The Income Tax Department claimed outstanding dues from the company, which were to be settled from the available funds. The court's decision facilitated the settlement of these dues and outlined the subsequent steps for the company's dissolution.

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 803096 (HC-MISC)
• Appeal Type: Others
• Pronouncement Date: 10-07-2015
• Assessment Year: misc
• Laws Referred To: Companies (Court) Rules, 1959, Section 481 of the Act of 1956
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: TANVI SAHAI
• Assessee Lawyers: GAURAV SHARMA
• Keywords: Dissolution of company; Liquidation; Objections to dissolution; Income tax outstanding
• Section: 9

Judgement Text

"1 (S.B. Company Application No.59/2014) In (S.B. Company Petition No.9/1964) Date: July 10, 2015. HON'BLE MR. JUSTICE ALOK SHARMA Mr. Gaurav Sharma, for Official Liquidator. Ms. Tanvi Sahai on behalf of Mr. R.B. Mathur, for the respondent. BY THE COURT: The matter comes up on an application under Rule 9 of the Companies (Court) Rules, 1959 for inviting objections to the proposed dissolution of the company in liquidation i.e. M/s. S.Sohanmal Golcha Private Limited (in liquidation) which was wound up on 10-8-1971 in S.B. Company Petition No.9/1964. The Official Liquidator has stated that the company in liquidation has no fixed assets. It has been pointed out that late H.C. Golcha was holding 17560 shares of the company in liquidation in his capacity of karta HUF. On demand being made by the Official Liquidator the legal representative of late H.C. Golcha namely S.K. Golcha has paid an amount of Rs.1,58,040/- towards full and final payment of partly paid up shares on 29-11-2013. The official Liquidator admits to have received the amount of Rs.1,58,040/- as full and final 2 payment. The said amount has been deposited in the account of the company in liquidation. Counsel for the Official Liquidator has submitted that in the circumstances, the court be pleased to allow invitation of objections to the dissolution of the company in liquidation M/s. S.Sohanmal Golcha Private Limited under Section 481 of the Act of 1956 as neither are there any creditors on record, aside of the Income Tax Department which can be paid off to the extent of monies available in the account of the company in liquidation, nor are there any other assets of the company in liquidation which can be liquidated. Ms. Tanvi Sahai appearing on behalf of Mr. R.B. Mathur counsel for the Income tax department submits that in respect of assessment by the Income Tax Department with regard to company in liquidation M/s. S.Sohanmal Golcha Private Limited for the period from 1947-48 to 1970-71 Rs.1,44,132/- is due and outstanding. She states that the said amount be paid to the department towards outstanding of the company in liquidation from the amount of Rs.1,58,040/- paid by S.K. Golcha legal representative of H.C. Golcha is lying in the account of the company in liquidation. Heard. Considered. The matter pertains to winding up order dated 10-8- 3 1971 and a period of about 45 years has since lapsed. In my considered opinion keeping the matter pending any further is of no avail nor of any purpose. In the circumstances, I would direct the Official Liquidator to pay the amount Rs.1,44,132/- to the Income Tax Department towards outstanding against the company in liquidation M/s. S.Sohanmal Golcha Private Limited out of the amount paid by Sh. S.K. Golcha and deposited in the account of the company in liquidation. Remainder amount be utilised by the Official Liquidator towards auditing/ the balance sheet/ accounts of the company in liquidation. Thereafter application for dissolution of the company in liquidation be filed as required in law. Application stands disposed of accordingly. (Alok Sharma), J. arn/ 4 All corrections made in the order have been incorporated in the order being emailed. Arun Kumar Sharma, Private Secretary. "