IMPERIAL CHIT FUNDS (P) LTD. vs INCOME TAX OFFICER, ERNAKULAM

The Supreme Court addressed the appeal by M/s. Imperial Chit Funds Private Limited against the High Court's order regarding the payment of income tax during liquidation proceedings. The Court held that the Income Tax Officer is entitled to claim tax as a debt provable in winding up, referencing Section 178 of the Income-tax Act and Section 530 of the Companies Act. The Court concluded that the tax demand must be settled in accordance with the Companies Act provisions, thereby affirming the High Court's decision to deny immediate payment of the tax claim.