TMI Blog2022 (4) TMI 1407X X X X Extracts X X X X X X X X Extracts X X X X ..... the order passed in appeal by the Appellate Tribunal, produced as Ext.P29, a total change of scenario has occurred. As rightly, contended by the learned Senior Counsel Sri.Joseph Markose, the proceedings under Section 179 of the Act can be initiated only when there is a tax due from the Company, in respect of any income of any previous year. As per Section 179 of the Act if tax is due from a private Company and the same cannot be recovered, then every person, who was a Director of the Company, at any during the relevant previous year, will be liable for payment of such tax. The very basis for issue of Ext.P10 was the existence of a tax liability against the Company. The said tax liability has been effaced completely by virtue of Ext.P29, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Company recovery proceedings were initiated against the Directors of the Company. By the impugned order Ext.P10 dated 10/7/2018, proceedings were initiated against the petitioner alleging him to be a Director of the Company. 3. While the challenge against Ext.P10 was pending before this Court the Company had, admittedly, pursued its challenge against the order of assessment that created the liability as against it. According to the petitioner, in the first appeal filed by the Company, a partial relief was obtained, and in the second appeal before the Appellate Tribunal, the entire assessment order against the Company was set aside. The Appellate Tribunal allowed the appeal by Ext.P29, in respect of the issues in appeal and remanded the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y income of any previous year. As per Section 179 of the Act if tax is due from a private Company and the same cannot be recovered, then every person, who was a Director of the Company, at any during the relevant previous year, will be liable for payment of such tax. The very basis for issue of Ext.P10 was the existence of a tax liability against the Company. The said tax liability has been effaced completely by virtue of Ext.P29, and the same has been remanded for reconsideration. 7. When the issue that was pending consideration before the Tribunal has been directed to be reconsidered, in the eyes of law after setting aside the order of assessment to the extent challenged before the Tribunal, there is no tax due from the Company. Conseq ..... X X X X Extracts X X X X X X X X Extracts X X X X
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