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2021 (10) TMI 234 - HC - Income TaxRecovery of tax dues of the Company from the directors - Applicability of section 179 to public limited company - liability of Directors qua Public Limited Company as in the case of private limited company - HELD THAT:- This Court is informed without any disputation or disagreement that there is no other provision under IT Act akin to Section 179 of IT Act i.e., recovery tax arrears due to Company in the hands of Directors qua Public Limited Company. In the light of the language in which Section 179 of IT Act is couched, it follows as a indisputable sequitur that impugned proceedings are barred and they are liable to be set aside as the same has been made against Directors of a Public Limited Company, when Section 179 of IT Act applies only to Private Limited Companies and there is no other provision qua Public Limited Companies akin to Section 179 of IT Act. Section 179(1) of IT Act not being applicable to Public Limited Companies. There is a compromise decree in a suit filed against said Company by third parties and in this compromise decree, Income Tax Department is a party and it has been paid out certain sums of money - As no document has been placed before this Court as part of the case file to demonstrate any payment having been made to the Income Tax Department under the compromise decree and the decree also does not articulate anything directly in this regard. Therefore, second point urged by learned counsel for writ petitioner becomes a non-starter and that by itself draws the curtains on the second point.
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