TMI Blog1984 (3) TMI 267X X X X Extracts X X X X X X X X Extracts X X X X ..... Paripoornan, J. The official liquidator, Palai Central Bank, has filed the above application. For the assessment years 1975-76 and 1976-77, the respondent (Income-tax Officer) effected assessments. Those were finally decided by the Appellate Tribunal. Notices of demand were served in pursuance thereto. The official liquidator remitted the amounts on April 27, 1981, after obtaining sanction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20(2) of the I.T. Act. Mr. C. M. Devan, advocate for the official liquidator, contended that the above proceedings for levy of interest under section 220(2) of the I.T. Act are unsustainable. Previous sanction of this court, enjoined by section 446 of the Companies Act, was not obtained. The banking company is being wound up. There should have been sanction of this court before any order levying i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vying interest can be sustained in the light of the peremptory statutory provision contained in section 446(2) of the Companies Act. I hold that the levy of interest by the respondent-ITO, without obtaining the sanction of this court under section 446(2) of the Companies Act, is illegal and unenforceable as against the official liquidator. I hereby declare so. The application is allowed. No costs. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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