Income Tax Act, 2025
Section 178: Company in liquidation.—(1) Every person—
178. Company in liquidation.—(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 1[Assessing Officer] who is entitled to assess the income of the
company.
(2) The 1[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 1[Assessing Officer], would be
sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
2[(3) The liquidator—
(a) shall not, without the leave of the 3[4[Principal Chief Commissioner or Chief Commissioner]
or 5[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 1[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 3[4[Principal Chief Commissioner or Chief Commissioner] or
5[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 6[except the provisions of the Insolvency and Bankruptcy
Code, 2016].
Every person—
who is the liquidator of any company which is being wound up, whether under the orders of a
court or otherwise; or
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 1[Assessing Officer] who is entitled to assess the income of the
company.
The 1[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 1[Assessing Officer], would be
sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company.
2[
The liquidator—
shall not, without the leave of the 3[4[Principal Chief Commissioner or Chief Commissioner]
or 5[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 1[Assessing Officer] under sub-section
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 3[4[Principal Chief Commissioner or Chief Commissioner] or
5[Principal Commissioner or Commissioner]] reasonable.
If the liquidator fails to give the notice in accordance with sub-section
or fails to set aside the
amount as required by sub-section
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
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.
The provisions of this section shall have effect notwithstanding anything to the contrary contained
in any other law for the time being in force 6[except the provisions of the Insolvency and Bankruptcy
Code, 2016].