Judgment

BALAKRISHNA ERADI, J.:- Whether a company in liquidation is chargeable to super profits tax under the Super Profits Tax Act, 1963 - Act XIV of 1963 (hereinafter called the Act) is the short question arising for determination in this appeal. The answer thereto will depend upon whether during the period subsequent to the date of winding up, any part of. the funds in the hands of the official liquidator can be distinctly classified as representing paid up share capital of the company as on the first day of the year of account relevant to assessment year and whether any portion of the fund can be similarly identified as forming as "reserve",

2. The assessee is a banking company, namely, The Palai Central Bank Ltd., which went into liquidation on August 8, 1960. On that date the Official Liquidator took charge of the assets and liabilities of the company and a balance-sheet had been prepared as on the same date. Thereafter, for every year, the liquidator used to prepare only an income and expenditure statement for submission to the Reserve Bank of India. The assessment year, with which we are concerned is 1963-64 i. e., the year ended March 31, 1963. For the said assessment year