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2012 (7) TMI 592 - HC - Income TaxLiability u/s 179 to pay the tax dues - a Revision Application under Section 264 filed by assessee - Held that:- As in the first round of the proceedings u/s 179 CIT set aside the order of ITO directing him that before any order u/s 179 is passed against the petitioner, AO must give a specific finding to the effect that efforts made to recover the tax dues from the said company had failed and that the petitioner should be heard before any order is passed u/s 179 - the petitioner was never informed of the efforts made by the department to recover the amounts from the said company - the reliance placed upon a report of the Tax Recovery Officer for conforming the liability, however, no copy of the said communication of the Tax Recovery Officer was ever made known to the petitioner and in spite of the petitioner seeking inspection of all the documents on record, no such inspection was ever given to the petitioner. In this circumstances, the order passed is not only on the basis of the material viz. Tax Recovery Officer's letter/report that was not disclosed to the petitioner, but also passed without a personal hearing, as directed by the order of the CIT as a breach of the principles of natural justice has occurred the order of ITO is liable to the quashed and set aside and the matter ought to be remanded to the Tax Officer for de novo adjudication - in favour of assessee by way of remand.
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