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2020 (2) TMI 960 - HC - Income TaxLiability of directors of private company in liquidation u/s 179 - Recovery proceedings - argument is that instead of recovering the aforesaid amount in tune with the provisions of Section 179 the Department proceeded to put the immovable properties to auction - HELD THAT:- It is too late in the day for the writ-applicants to redress any grievance of any nature having not challenged the order passed u/s 179 and having permitted the order to attain finality. At this point of time, it would not be appropriate for this Court to disturb the entire auction proceedings undertaken by the Department. The company has defaulted in payment of income tax to the tune of ₹ 1907.90 Lakh. In such circumstances, even if the say of the writ-applicants is accepted that the company has to recover an amount of ₹ 694.60 Lakh, the company would not be in a position to make the payment of the outstanding tax liability. Therefore, when the order dated 27.12.2017 passed under Section 179 has attained finality and is implemented with the auction of the immovable properties, no interference is called for at this belated stage. The grievance of the writ-applicants with regard to so called irregularities and illegalities in the auction proceedings conducted by the respondents can be agitated before the appropriate forum. Merely because the company is now a running concern by virtue of the orders passed by the NCLT, Mumbai in the Insolvency Petition filed by the ARCIL, it would not alter the situation with regard to the recovery of the dues of the income tax under the provisions of the Act1961. The order passed by the NCLT has been quashed by the Supreme Court. 10. In the result, this writ-application fails and is hereby rejected.
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