Section 178Central Act

Section 178: Company in liquidation

The Income-tax Act, 1961

Company in liquidation.

(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 [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] who is entitled to assess the income of the company.

(2)

The [Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).] 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 Assessing Officer, would be sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.

(3)

[ The liquidator-

(a)

shall not, without the leave of the ] [Chief Commissioner or Commissioner] [ Substituted by Act 4 of 1988, Section 2, for " Commissioner" (w.e.f. 1.4.1988).][, part with any of the assets of the company or the properties in his hands until he has been notified by the ] [ Substituted by Act 10 of 1965, Section 41, for sub-Sections (3) and (4) (w.r.e.f. 1.4.1965).][Assessing Officer] [ Substituted by Act 4 of 1988, Section 2, for " Income-tax Officer" (w.e.f. 1.4.1988).][under sub-section (2); and [ Substituted by Act 10 of 1965, Section 41, for sub-Sections (3) and (4) (w.r.e.f. 1.4.1965).]

(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 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.] [ Substituted by Act 10 of 1965, Section 41, for sub-Sections (3) and (4) (w.r.e.f. 1.4.1965).]

(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 [except the provisions of the Insolvency and Bankruptcy Code, 2016.] [Inserted by Insolvency and Bankruptcy Code, 2016, Section 247.][M.-Private companies] [ Substituted by Act 41 of 1975, Section 50, for sub-heading (w.e.f. 1.10.1975).]

Sec 177 — Association dissolved or business discontinued

Sec 179 — Liability of directors of private company in liquidation

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