The Court permitted the Official Assignee to correct income tax returns for an insolvent estate by including income where a commission deduction was erroneously made, allowing tax payment within the estate.
Permission granted to the Official Assignee to correct tax returns and pay taxes on the corrected income.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
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IN THE HIGH COURT OF JUDICATURE AT MADRAS
(IN INSOLVENCY)
MONDAY, THE 22ND DAY OF JANUARY 2018
THE HON'BLE MR.JUSTICE R.SUBRAMANIAN
APPLN.NO.117 OF 2017
IN
IP.NO.4 OF 2009
I.P. No.4 of 2009
In the matter of Presidency Towns Insolvency Act, and In the matter of Venture Electronix Prop.B.Jayavel ... Debtor
Venture Electronix, rep. by its Proprietor, B.Jayavel, residing at No.4A, Ganga Nagar, Jafferkhanpet, Chennai-600 083. ... Petitioner / Debtor APPLN.NO.117 OF 2017
The Official Assignee, High Court, Madras ... Applicant -VS1.Venture Electronix, rep. by its Proprietor, B.Jayavel, residing at No.4A, Ganga Nagar, Jafferkhanpet, Chennai-600 083. ...1st Respondent/Insolvent 2.The Assistant Commissioner of Income Tax, Non Corporate Range-13, Annexue Building, 121, Mahatma Gandhi Road, Chennai 34. ... 2nd Respondent
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Application praying that this Hon'ble Court be pleased to direct the Official Assignee to file the Returns of Income for the Assessment years 2014-2015 and 2015-2016 in the case of Venture Electronix Proprietor B.Jayavel (insolvent) and pay the taxes including disputed taxes without interest by way of cheque/draft drawn infavour of the Jurisdictional Assessing Officer (2nd Respondent).
The above application coming on this day before this court for hearing in the presence of Mr.J.Balachander, advocate for the Official Assignee of this court, the applicant; Mr.S.Pugalendhi, advocate for the 1st respondent/insolvent and Mr.M.Swaminathan, advocate for the 2nd respondent herein; and upon reading the Judges Summon and report of the Official Assignee filed herein,
THE COURT MADE THE FOLLOWING ORDER :
This application has been filed by the Official Assignee seeking permission to correct the returns filed for the assessment years 2014-2015 and 2015-2016 and pay the taxes without interest.
2.Mr.J.Balachander, learned counsel appearing for
the Official Assignee would submit that while filing the returns, a mistake had crept in deducting 7% towards commission. Such deduction, according to him, is not
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permissible. Hence, he seeks permission to include that amount as the income of the insolvent and to pay taxes on that amount also.
3.Considering the report of the Official Assignee, this application is ordered. The Official Assignee is permitted to correct the returns and pay the taxes that is payable in the estate.
WITNESS, THE HON'BLE MS. INDIRA BANERJEE, CHIEF
JUSTICE, HIGH COURT AT MADRAS, AFORESAID THIS THE 22ND DAY OF JANUARY 2018.
ASSISTANT REGISTRAR(O.S.I)
//CERTIFIED TO BE TRUE COPY// DATED THIS THE DAY OF 2018
MANAGER
INSOLVENCY OFFICE
From 25th Day of September 2008 the Registry is issuing
certified copies of the Orders/Judgments/Decrees in this format.
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cns-12.02.2018
HIGH COURT, MADRAS
APPLN.No.117 OF 2017
IN
I.P.NO.4 OF 2009
THE HON'BLE MR.JUSTICE
R.SUBRAMANIAN
ORDER DATED:22.01.2018
FOR APPROVAL:09/04/2018/ 23/04/2018 APPROVED ON :23.04.2018
COPY TO:-
THE OFFICIAL ASSIGNEE HIGH COURT, MADRAS.
2 issues framed by the court
Whether the Official Assignee is permitted to correct income tax returns filed for an insolvent estate regarding a disputed commission deduction.
Whether the Official Assignee can authorize the payment of taxes on the corrected income without interest.
Official Assignee, High Court
Venture Electronix
Assistant Commissioner of Income Tax
R.Subramanian
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
