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2013 (10) TMI 1450 - HC - Income TaxInvoking the provisions of section 179 - Held that:- The statute permits the lifting of the corporate veil section 179 of the Act as one of the modes of the statutes permitting such piercing of the veil provided of course Directors of the Private Company behind the veil are the beneficiaries and who have created such a complex web for their personal interest so as to defraud the Revenue. When the facts are eloquent enough in the instant case, where the petitioners were never concerned with the affairs of the Company until 28.12.2005 and the Company had already become Public Limited Company and by the time they became Directors, they were not even simple shareholders for the entire period till the year 2006, there does not arise any question of applying the ratio of decision of Pravinbhai M. Kheni V/s. Assistant Commissioner of Income -Tax and others [2012 (12) TMI 494 - GUJARAT HIGH COURT] for that matter upholding the action of the respondents of invoking the provisions of section 179 of the Act. In our opinion, the very action of the respondents of invocation of powers under section 179 of the Act qua the petitioners is bad in law and requires quashment, and therefore, impugned notice dated 14.10.2011 and all consequential orders are hereby quashed and set aside.
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