TMI Blog1935 (5) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... e 49 of the rules framed by this Court under the Indian Companies Act. He claims that at the date of the winding up order the company stood indebted to the income tax department for Rs. 5,770-14-0 on account of income tax and surcharge for the assessment year ending on 31st March, 1934. The official liquidator disputes the claim. The admitted facts of the case are that on 12th April, 1933, a notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax authorities to cancel the assessment but without success. There is no doubt that the income tax authorities were within their rights in making the assessment on an estimated income when the company had failed to file the return of its income within the prescribed time. It is equally clear that the assessment made by the income tax department was binding on the company. But the question arises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lvent. Section 34(2) of the Provincial Insolvency Act lays down that save as provided by sub-Section (1) of that section all debts and liabilities, present or future, certain or contingent, to which the debtor is subject when he is adjudged an insolvent, or to which he may become subject before his discharge by reason of any obligation incurred before the date of such adjudication, shall be deemed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the merits of the case or there are circumstances justifying the official liquidator to doubt the bona fides of the judgment or to suspect a miscarriage of justice, it would be open to the official liquidator to reject the decree and call for fresh proof of the claim. A number of English authorities have been cited in the case in support of the proposition that it is open to the Court of Bankrup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the estate. The audited accounts for 1932-33 have been shown to me. They have also been examined by the learned Government Advocate who has nothing to say against their correctness. These accounts show that the company did not make any profit during the year. On the contrary it suffered a loss of Rs. 3,54,234-1-2. Under the circumstances the assessment is clearly unjustified and I am not prepare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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