TMI Blog2012 (2) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of non-deduction of TDS on the interest paid to Bihar State Housing Board (b) confirming the order of the assessing officer for short fall in the deduction of TDS on the interest paid on the deposits made by official liquidator appointed by Hon ble High Court Patna in respect of the company Rohtas Industries Limited and charging interest u/s 201(1A) of the Act on the shortfall of TDS. 2. It is relevant to state that at the time of hearing, the Ld. A.R. made his submission disputing the order of Ld. CIT(A) only in respect of failure to deduct TDS on the interest paid on the deposits put by official liquidator and charging of interest there on u/s 201(1A) of the Act. Ld. A.R. has not made any submission in respect of charging ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n ble High Court and as such he is an officer of the Central Government. He is not liable to pay tax under the provisions of the Act. It was also contended that in terms of article 289 of the constitution of India, money held by the official liquidator is on behalf of or at the direction of the Hon ble High court and said amount does not belong to official liquidator. Hence, he (official liquidator) is not liable to pay tax, consequently, the appellant bank was not required to deduct tax at source thereon in relation to payment made to official liquidator. It was also contended that the money deposited by the official liquidator did not belong to him and the interest earned was only to safeguard further eventual losses to the company i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 446 of the Companies Act, no suit/legal proceedings against a company in liquidation could be proceeded with, without permission of Hon ble Winding Up Court i.e. Company Court and therefore, the assessing officer should have taken permission of the company court to proceed in the matter for recovery of TDS and the interest there on. The Ld. A.R. submitted that in the absence of such permission, the impugned proceedings are vitiated. The Ld. A.R. referred the decision of the Hon ble apex court in the case of J.K. (Bom) Pvt. Limited Vs. New Kaiser-I-Hind Sp. Wvg. Company AIR 1970 SC 1041. He further submitted that cases relied upon by the Ld. CIT(A) are not applicable in deciding the issue under consideration as those cases relate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sentatives of the parties and the provisions of section 446, 448 433 of the Companies Act and also the relevant provisions of Income-tax Act viz. section 194A read with section 201(1)/201(1A) and section 178 read with section 2(35) of Income-tax Act. 9. Before we consider the submission of Ld. A.R., it is relevant to state that the reliance placed by the Ld. A.R. on the provisions of Companies Act to the effect that when an official liquidator is appointed by the Hon ble Winding Up Court in the Winding up proceedings, it is a fact that no suit or legal proceeding shall be commenced or if pending at the time of winding up order; shall be proceeded with against the said company save and except with the leave of the Hon ble Court. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al liquidator and/or the company in winding up which is considered in default against whom the proceedings have been initiated by the assessing officer. The proceedings have been initiated by the assessing officer against the appellant bank for short deduction of TDS. Accordingly, we are of the considered view that the contention of Ld. A.R. that the proceedings against the appellant bank u/s 201(1) is not valid as no permission of the winding up Court has been obtained as per section 446 of Companies Act has no merits and the same is rejected. We are of the considered view that the assessing officer is justified to initiate proceedings for short deduction of TDS on account of nondeduction of TDS on the interest paid and consequently to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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