Section 88. Liability in case of company in
liquidation.-
(1) When any company is being wound up whether under
the orders of a court or Tribunal or otherwise, every person appointed as
receiver of any assets of a company (hereafter in this section referred to as
the "liquidator"), shall, within thirty days after his appointment,
give intimation of his appointment to the Commissioner.
(2) The Commissioner shall, after making such inquiry
or calling for such information as he may deem fit, notify the liquidator
within three months from the date on which he receives intimation of the
appointment of the liquidator, the amount which in the opinion of the
Commissioner would be sufficient to provide for any tax, interest or penalty
which is then, or is likely thereafter to become, payable by the company.
(3) When any private company is wound up and any tax,
interest or penalty determined under this Act on the company for any period,
whether before or in the course of or after its liquidation, cannot be
recovered, then every person who was a director of such company at any time
during the period for which the tax was due shall, jointly and severally, be
liable for the payment of such tax, interest or penalty, unless he proves to
the satisfaction of the Commissioner that such non-recovery cannot be attributed
to any gross neglect, misfeasance or breach of duty on his part in relation to
the affairs of the company.
