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2015 (4) TMI 325 - HC - Income TaxRecovery of tax due from the directors - no finding that the tax due cannot be recovered from the company - Held that - S. 179 of the Act imposes a personal liability on the Directors of a Private Company in respect of the Tax due from the company in the circumstances referred to therein. As could be seen from the impugned orders nowhere respondent No.3 has referred to any of the proceedings initiated against the company to show that it is not possible to recover the tax due from the company. In the absence of such a finding no liability could be fixed on the Directors under S. 179 of the Act to pay the tax due. Hence the impugned orders and the consequent demand notices are liable to be set aside and are accordingly set aside. The matter is remitted to respondent No.3 for reconsideration in accordance with law after affording an opportunity of hearing to the petitioners. - Decided in favour of assessee.
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