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Where the estate or any portion of the estate of a taxable person owning a business in respect of which any tax, interest or penalty is payable under this Act is under the control of the Court of Wards, the Administrator General, the Official Trustee or any receiver or manager (including any person, whatever be his designation, who in fact manages the business) appointed by or under any order of a court, the tax, interest or penalty shall be levied upon and be recoverable from such Court of Wards, Administrator General, Official Trustee, receiver or manager in like manner and to the same extent as it would be determined and be recoverable from the taxable person as if he were conducting the business himself, and all the provisions of this Act or the rules made thereunder shall apply accordingly.
92.1 Introduction
This section empowers collection of tax, interest or penalty from Court of Wards, Administrator General, Official Trustee or any receiver or manager, who controls the estate or any portion thereof in respect of the taxable person who owns a business and whose estate is being controlled.
92.2 Analysis
In respect of any tax, interest or penalty relating to a business of the taxable person whose estate or part thereof is under their control of the following, (the same persons (following) will be liable as if they were themselves conducting the business as taxable person/s):
(i) Court of Wards or
(ii) Administrator general or
(iii) Official trustee or
(iv) Any receiver or manager or
(v) Including any person, whatever be his designation , who in fact actually manages the business.
Illustration:- Mr. ABC is appointed as manager of Mr. X, to manage the estate of Mr. X, who owns a garment business. Mr. X is liable to pay Rs. 20,00,000/- of CGST, interest and penalty to the Government. The department can recover such dues from Mr. ABC who is managing the estates of Mr. X., by invoking this provision.
92.3 FAQs
Q1. Who is liable to pay tax dues if the estate of a taxable person is controlled by Court of Wards?
Ans. The dues are recoverable from the Court of Wards as if he is conducting the business for himself.
92.5 MCQs
Q1. If the estate or any portion of the estate of a taxable person is under the control of the Court of Wards, Administrative General etc., the tax due from such taxable person is liable to be paid by – (a) Court of Wards.
(b) Taxable Person
(c) Legal representative of taxable person
(d) None of the above
Ans. (a) Court of Wards
Q2. The Court of Wards, Administrative General, etc., must be appointed by-
(a) Supreme Court
(b) High Court
(c) Any court
(d) None of the above
Ans: (c) Any Court
Q3. The dues recoverable under this section includes
(a) Only Interest
(b) Any dues which are recoverable under this Act
(c) Only tax
(d) Only Penalty
Ans. (b) Any dues which are recoverable under this Act
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