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2013 (5) TMI 331 - GUJARAT HIGH COURTLiability of directors of private company in liquidation - Section 179 v/s 156 - Penalty u/s 271(1)(c) - whether in exercise of powers u/s 179 of the Act any recovery can be made from the petitioner towards interest and penalty with respect to the private limited company in which the petitioner was a Director? Held that:- Issues are covered in the decision of the Court in case of Maganbhai Hansrajbhai Patel v. Assistant Commissioner of Income Tax [2012 (11) TMI 189 - GUJARAT HIGH COURT]. Therefore it was not legally permissible for the respondent to recover from the petitioner, interest and penalty arising out of the assessment order passed against the company, in which the petitioner was a Director. Respondent shall not seek any recovery of the penalty and shall refund the interest and a portion of the penalty, which is already recovered so far. Since the petitioner had approached this Court after a considerable delay after the interest was recovered, we provide that such refund shall not carry interest, if made within a period of three months from today. Failing which, from the end of such period, the amount to be refunded shall carry simple interest @ 9% per annum till actual payment.
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