TMI Blog1965 (9) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... direction to pay the same as a preferential claim. The amount claimed is the total tax liability for two assessment years 1954-55 and 1955-56. The assessment order in respect of the former was passed on March 10, 1959, and that in respect of the latter on March 27, 1962. Action was also taken for recovery under section 46(2) of the Income-tax Act of 1922 in October, 1959, and a certificate for recovery through the Deputy Commissioner was issued on December 19, 1960, followed later by a letter dated April 9, 1963, to recover the entire amount claimed in this application. The company was ordered to be wound up by this court on July 6, 1964. So far as the amount of the claim itself is concerned, there can be no doubt about its accuracy b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Companies Act. It appears to have been argued that the tax had not become due within twelve months next before the winding up, though it might be said to have become payable within that period. The argument was rejected with the following observations : " Mr. Sreenath Singh has contended that the amount of Rs. 7,934-1-0, due to the sales-tax department is not entitled to priority, because it did not become due during the period of 12 months next before the relevant date. I am of opinion that this contention is without substance. Section 530(1)(a) of the new Act does not require that a claim must become due as well as payable within the period of twelve months. In my judgment its requirements are satisfied if the co-existence of both o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that it remains unpaid is the very reason for the claim because, if it had been paid, there would have been nothing in respect of which a claim would have been made. From any point of view, therefore, this interpretation cannot be accepted. There is reference made in the prayer itself to section 178 of the Income-tax Act of 1961, but I do not see any relevancy for that reference because that section of the Income-tax Act contemplates an issue of notice to the official liquidator and deals with certain consequences flowing therefrom. There has not been any such notice in this case and therefore there can be no argument capable of being addressed on the basis of the said section. The rule as to priorities in section 530 of the Companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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