In Brief
The Income Tax Department appealed to the High Court against an Income Tax Appellate Tribunal order, but the High Court dismissed the appeal as infructuous after learning the respondent company had been dissolved. The Supreme Court held that the High Court erred in dismissing the appeal without considering specific statutory provisions—Section 560(5) proviso (a) of the Companies Act and Chapter XV, clause (L) of the Income Tax Act—which govern liability of dissolved companies. The Court allowed the appeal and remanded it to the High Court for fresh consideration on merits in light of these relevant provisions.
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