Recovery Action Against Company Directors Cannot Be Initiated If Status Of Assessee Is Non-Existent: Madras High Court
1 month, 1 week ago

Recovery Action Against Company Directors Cannot Be Initiated If Status Of Assessee Is Non-Existent: Madras High Court

Live Law  

The Madras High Court ruled that recovery actions against the directors of a company cannot be initiated if the status of the assessee is non-existent. However, in the case of dissolution, the entity wholly ceases to exist.” In this case, the assessee company was ordered to be wound up, and an Official Liquidator was appointed to manage the company's liquidation. The bench stated that in “conclusion and succumbing to the status of the assessee which, as on date, is non-existent, they seek liberty to proceed with recovery action against the Directors of the company, if any, under the provisions of the Tamil Nadu General Sales Tax Act, 1959, Central Sales Tax Act, 1956 and Revenue Recovery Act. Counsel for Petitioner/ Assessee: N. Prasad Counsel for Respondent/ Department: Amirta Dinakaran Case Title: Lakshana Cotton Spinning Mills Limited v. The Commercial Tax Officer Citation: 2024 LiveLaw 438 Case Number: W.P.Nos.33613 Click Here To Read/Download The Order

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History of this topic

Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order
4 months, 1 week ago

Liquidator Never Informed Of Reassessment Proceedings, Patna High Court Quashes Order

Live Law  

The Patna High Court has quashed the order as the liquidator was not informed of the reassessment proceedings.The bench of Chief Justice K. Vinod Chandran and Justice Partha Sarthy has observed that the liquidator should be noticed and participate in the reassessment proceedings. The Patna High Court has quashed the order as the liquidator was not informed of the reassessment …

Madras High Court: MSME Corporate Debtor Can't Misuse Clean Slate Theory To Withhold Information When Its Management Had A Duty To Disclose
6 months, 1 week ago

Madras High Court: MSME Corporate Debtor Can't Misuse Clean Slate Theory To Withhold Information When Its Management Had A Duty To Disclose

Live Law  

The Madras High Court bench of Justice N. Seshasayee held that an MSME Corporate Debtor cannot exploit the Clean Slate Theory by withholding information, especially when its management, which remained in control, had a duty to disclose such information. The petitioner filed the writ of certiorari and mandamus before the Madras High Court to quash the Demand Notice issued by …

No Irreversible Actions In Winding Up, Company Court Can Transfer Proceedings To NCLT: Bombay High Court
6 months, 2 weeks ago

No Irreversible Actions In Winding Up, Company Court Can Transfer Proceedings To NCLT: Bombay High Court

Live Law  

The Bombay High Court bench of Justice Abhay Ahuja held that as long as no irreversible actions, such as actual sales of immovable or movable properties, have occurred, the Company Court retains the discretion to transfer proceedings to the NCLT. Brief Facts: The Applicant approached the Bombay High Court to transfer Company Petition No.317 of 2012 to the National Company …

Tax Dues Can't Be Collected From Director Of Company Under Liquidation Unless Provided By Some Statute: Allahabad High Court Reiterates
7 months, 1 week ago

Tax Dues Can't Be Collected From Director Of Company Under Liquidation Unless Provided By Some Statute: Allahabad High Court Reiterates

Live Law  

Relying on its earlier decision in A.S. Solanki Vs. State of U.P. and others, the Allahabad High Court has reiterated that tax dues cannot be collected from director of company under liquidation unless it has been provided in any statute. The Court in A.S. Solanki had held that the law laid down in Naresh Chander Gupta could not be said …

In The Absence Of A Full And True Disclosure, Reassessment Is Not Barred By Limitation: Madras High Court
2 years, 1 month ago

In The Absence Of A Full And True Disclosure, Reassessment Is Not Barred By Limitation: Madras High Court

Live Law  

The Madras High Court has held that the criminal investigation wing is separate and distinct from the assessment wing and that disclosure made before one wing will not exonerate the assessee from the requirement of making a "full and true disclosure" before the assessing officer in an assessment.The single bench of Justice Anitha Sumanth has observed that in the absence …

Invalid Reassessment Notice, The Entire Proceedings have To Collapse: Calcutta High Court
2 years, 3 months ago

Invalid Reassessment Notice, The Entire Proceedings have To Collapse: Calcutta High Court

Live Law  

The Calcutta High Court has held that the foundation of a reassessment proceeding is a valid notice, and if the notice is held to be invalid, the entire edifice sought to be raised has to collapse. Therefore, the Assessing Officer held that these amounts were to be taxed separately at the Maximum Marginal Rate in terms of the proviso to …

Reopening of IT Assessment By Officer Having No Jurisdiction: Madras High Court Invalidates Proceedings
2 years, 5 months ago

Reopening of IT Assessment By Officer Having No Jurisdiction: Madras High Court Invalidates Proceedings

Live Law  

The Madras High Court invalidated the reassessment procedures on the basis that the reopening of the income tax assessment was conducted by an officer without jurisdiction. After a period of five years, the assessee received a notice dated March 28, 2018 issued by the ACIT Mumbai under Section 148 purportedly to re-assess the income tax return submitted by her for …

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