Section 178 of Income Tax Act "Company in liquidation"
178. (1) Every person-
(a) who is the liquidator of any company which is being
wound up, whether under the orders of a court or otherwise;
or
(b) who has been appointed the receiver of any assets of a
company,
(hereinafter referred to as the liquidator) shall, within
thirty days after he has become such liquidator, give notice
of his appointment as such to the Assessing Officer who is
entitled to assess the income of the company.
(2) The Assessing Officer shall, after making such inquiries
or calling for such information as he may deem fit, notify
to the liquidator within three months from the date on which
he receives notice of the appointment of the liquidator the
amount which, in the opinion of the Assessing Officer, would
be sufficient to provide for any tax which is then, or is
likely thereafter to become, payable by the company.
(3) The liquidator-
(a) shall not, without the leave of the Principal Chief
Commissioner or Chief Commissioner or Principal Commissioner
or Commissioner, part with any of the assets of the company
or the properties in his hands until he has been notified by
the Assessing Officer under sub-section (2) ; and
(b) on being so notified, shall set aside an amount, equal
to the amount notified and, until he so sets aside such
amount, shall not part with any of the assets of the company
or the properties in his hands :
Provided that nothing contained in this sub-section shall
debar the liquidator from parting with such assets or
properties for the purpose of the payment of the tax payable
by the company or for making any payment to secured
creditors whose debts are entitled under law to priority of
payment over debts due to Government on the date of
liquidation or for meeting such costs and expenses of the
winding up of the company as are in the opinion of the
Principal Chief Commissioner or Chief Commissioner or
Principal Commissioner or Commissioner reasonable.
(4) If the liquidator fails to give the notice in accordance
with sub-section (1) or fails to set aside the amount as
required by sub-section (3) or parts with any of the assets
of the company or the properties in his hands in
contravention of the provisions of that sub-section, he
shall be personally liable for the payment of the tax which
the company would be liable to pay :
Provided that if the amount of any tax payable by the
company is notified under sub-section (2), the personal
liability of the liquidator under this sub-section shall be
to the extent of such amount.
(5) Where there are more liquidators than one, the
obligations and liabilities attached to the liquidator under
this section shall attach to all the liquidators jointly and
severally.
(6) The provisions of this section shall have effect
notwithstanding anything to the contrary contained in any
other law for the time being in force except the provisions
of the Insolvency and Bankruptcy Code, 2016.
179. (1) Notwithstanding anything contained in the Companies
Act, 1956 (1 of 1956), where any tax due from a private
company in respect of any income of any previous year or
from any other company in respect of any income of any
previous year during which such other company was a private
company cannot be recovered, then, every person who was a
director of the private company at any time during the
relevant previous year shall be jointly and severally liable
for the payment of such tax unless he proves that the
non-recovery cannot be attributed to any gross neglect,
misfeasance or breach of duty on his part in relation to the
affairs of the company.
(2) Where a private company is converted into a public
company and the tax assessed in respect of any income of any
previous year during which such company was a private
company cannot be recovered, then, nothing contained in
sub-section (1) shall apply to any person who was a director
of such private company in relation to any tax due in
respect of any income of such private company assessable for
any assessment year commencing before the 1st day of April,
1962.
Explanation.-For the purposes of this section, the
expression "tax due" includes penalty, interest or any other
sum payable under the Act.
180. Where the time taken by the author of a literary or
artistic work in the making thereof is more than twelve
months, the amount received or receivable by him during any
previous year on account of any lump sum consideration for
the assignment or grant of any of his interests in the
copyright of that work or of royalties or copyright fees
(whether receivable in lump sum or otherwise), in respect of
that work, shall, if he so claims, be allocated for purposes
of assessment in such manner and to such period as may be
prescribed :
Provided that nothing contained in this section shall apply
in relation to the previous year relevant to the assessment
year commencing on or after the 1st day of April, 2000.
Explanation.-For the purposes of this section, the
expression "author" includes a joint author, and the
expression "lump sum", in regard to royalties or copyright
fees, includes an advance payment on account of such
royalties or copyright fees which is not returnable.