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2014 (4) TMI 1010 - GUJARAT HIGH COURTLiability to pay tax dues u/s 179 of the Act - Whether the Directors of the company mainly incorporated in the year 1994 are liable for payment of tax dues from the company for the assessment year 1996 - 1997 in accordance with the provisions of Section 179 of the Act – Held that:- Assessee rightly contended that the provision of Section 179 of the Act not being applicable for M/s Asian Finstock Limited not being a private company, but, a public limited company from 05.12.1994 - the revenue neither in show cause notice u/s 179 of the Act nor in the order passed under the provisions has laid any factual foundation thereby disputing the status of such company of that a public limited company - Relying upon Pravinbhai M. Kheni v. Asstt.CIT Assistant Commissioner of Incometax, Central Circle 2 and others [2012 (12) TMI 494 - GUJARAT HIGH COURT] - In absence of any foundational facts and in wake of clear and eloquent evidences reflecting the status of company as that of a public limited company, the contention of the assessee shall need to be regarded that in a case of Director of a public limited company, the provisions of Section 179 cannot be made applicable – thus, the issuance of show cause notice and the consequently proceedings u/s 179 is not valid - Decided in favour of Assessee.
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