COMMISSIONER OF INCOME TAX, ERNAKULAM. (KERELA) vs THE OFFICIAL LIQUIDATOR, PALAI CENTRAL BANK LTD,(IN LIQUIDA

The Supreme Court held that a company in liquidation cannot be assessed for super profits tax under the Super Profits Tax Act, 1963, specifically sections 2(5), 2(9), and 4, as it lacks distinct paid-up share capital or reserves post-liquidation. The Court emphasized that the distinction between capital, reserve, and accumulated profits ceases to exist, resulting in a single integrated fund in the hands of the liquidator. Consequently, the assessment made by the Income-tax officer was invalid, and the appeal by the Revenue was dismissed.