9911796707
TMI Blog1995 (7) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... sel appearing for some of these notified persons submitted to the learned judge that he wished to show that the demands of the appellant were unreasonable and unjustified and, if satisfied, he should not order release of the amounts claimed. Having heard counsel, the learned judge passed the impugned order. It said that while the Special Court could not sit in appeal over orders of the tax authorities, it was entrusted with the task of distributing the funds in the manner laid down under section 11 of the said Act and the priorities laid down thereunder had to be observed. The priorities and objects of the said Act could and would be defeated if the Special Court could not " go into the bona fides of a claim. In that case a party, like the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ull, as far as may be, in the order as under : " (a) all revenues, taxes, cesses and rates due from the persons notified by the custodian under sub-section (2) of section 3 to the Central Government or any State Government or any local authority ;.... " It is clear that the Special Court has no power to sit in appeal over or overrule the orders of the tax authorities, the Income-tax Appellate Tribunal or the courts in regard to the tax liabilities of notified persons. The only power of the Special Court is to determine the priorities in which claims upon the property under attachment shall be paid. The claims relating to the tax liabilities of a notified person are, along with revenues, cesses and rates, entitled to be paid first in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id : " The Income-tax Act is, in our opinion, a complete code and it is particularly so with respect to the assessment and reassessment of income-tax with which alone we are concerned in the present case. The fact that after the amount of tax payable by an assessee has been determined or quantified its realisation from a company in liquidation is governed by the Act because the income-tax payable also being a debt has to rank pari passu with other debts due from the company does not mean that the assessment proceedings for computing the amount of tax must be held to be such other legal proceedings as can only be started or continued with the leave of the liquidation court under section 446 of the Act. The liquidation court, in our opinion, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other creditors of the company in liquidation. We are of the view, therefore, that this judgment does not assist us in upholding the view taken by the Special Court. The Special Court has no jurisdiction to sit in appeal over the assessment of the tax liability of a notified person by the authority or Tribunal or court authorised to perform that function by the statute under which the tax is levied. The Special Court has, therefore, no jurisdiction to determine whether or not any assessment of the tax liability of a notified person by the appropriate authority is bona fide or reasonable or justified or enforceable. The appeal is allowed. The order under appeal is set aside in so far as it requires the appellant to produce the records ..... X X X X Extracts X X X X X X X X Extracts X X X X
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