UNION OF INDIA AND ANR. vs INDIA FISHERIES (P) LTD.

The Supreme Court held that the Income Tax Officer erred in applying Section 49E of the Income Tax Act, 1922, to set off a refundable amount against tax due from a company in liquidation. The Court clarified that under Sections 228 and 229 of the Companies Act, 1913, an unsecured creditor must prove their debts, and all unsecured debts are to be paid pari passu. The Court emphasized that a general provision like Section 49E cannot override the specific provisions of the Companies Act regarding liquidation, thus upholding the High Court's decision.