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2014 (4) TMI 1007 - HC - Income TaxLiability to pay tax dues u/s 179 of the Act - Liability of directors of private company in liquidation - Held that:- Assessee rightly contended that the provision of Section 179 of the Act not being applicable for M/s. Blue Information Technology being a public limited company - 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 Income tax, Central Circle 2 and others [2012 (12) TMI 494 - GUJARAT HIGH COURT] - The provisions are made in respect of private companies and sub-section (2) of section 179 of the Act makes it abundantly clear that in the case of a public company or public limited company, the very provision is not applicable - the onus of the assessee to establish that non-recovery of the amount of tax due to the Company could not be attributed to any gross negligence, misfeasance or breach of duty on the part of the petitioner in relation to the affairs of the private Company, but the action against the assessee u/s 179 of the Act would not lie - Decided in favour of Assessee.
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