1. As almost all the details of work in connection with the winding-up of the affairs of the company had been concluded and there appeared to be available with the liquidator more than a lakh of rupees and requests were made on behalf of the petitioning-creditor and other that steps may be taken to declare a final dividend, I directed the liquidator to file a report giving particulars so that that I may give further directions for the above purpose.

2. The liquidator filed a report stating that though there was with him a sum of Rs. 1,47,483 in the account of the winding-up, it may not be possible to declare a dividend for the reason that large amounts would be required to pay the fees due to Central Government and also that the auditors had suggested that there was also a tax liability in respect of income arising out of the investments made in the course of winding up. As the liquidator appeared to entertain the opinion that it was a matter for doubt whether the company in liquidation could be held to be liable to tax in the light of the recent amendments of the Income Tax Act and the Companies Act, I asked him to take out a formal application for directions. The above Ap