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2018 (3) TMI 959 - BOMBAY HIGH COURTNon compliance with condition precedent u/s 179(1) - recovery of dues of the company from the directors - revision application u/s 264 rejected - Held that:- It is an agreed position between the parties that in view of the decision of this Court in Madhavi Kerker v. Assistant Commissioner of Income Tax [2018 (1) TMI 749 - BOMBAY HIGH COURT], the jurisdiction to proceed against the directors of the Company under Section 179(1) of the Act can only be exercised when the Revenue is unable to recover tax dues from the private limited company. This requirement of the Revenue having failed to recover its dues from the defaulting private limited company before proceeding against its Directors has been held to be a condition precedent for exercise of jurisdiction under Section 179(1) of the Act. The jurisdictional requirement must be intimated to the directors of the delinquent private limited company indicating the tax dues, the steps taken to recover the tax dues from the delinquent company and its failure. In the present facts it is undisputed position that the show cause notice to the Petitioner did not indicate the steps taken to recover the tax dues form delinquent private limited company and its failure to collect the same. Order set aside - AO is at liberty to pass a fresh order after issuing an appropriate notice to the Petitioner.
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