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2009 (6) TMI 628 - HC - Income TaxLiability of Directors - recovery of tax, interest and penalty - proceedings initiated against the petitioners under section 179 - It is made clear that this interpretation of phrase "tax would not be" is under section 179 of the Act and does not encompass the assessee - If the company is not in a position to meet the demands of payment of income-tax, the directors are personally liable to satisfy the said claim. Hence proceedings were initiated against the petitioners who are the directors of the company. - Indeed the assessee as contemplated under section 222 of the Act is liable to pay all the three components, i.e., "tax", "interest" and "penalty" and any other sum due or recoverable from him - Petitioners as directors of the company are not liable to pay the interest and penalty - Assessee-company is liable to pay all the three components under section 222 of the Act as observed - Accordingly petition is rejected
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