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2022 (6) TMI 153 - HC - Income TaxProceedings u/s 179 - Recovery of arrears of tax of the company from the Directors - It is contended that as per the order of ITAT, the very basis of tax liability imposed against the Company has eroded and therefore no tax liability remains - proceedings u/s 230 were initiated and an order was issued as Ext.P20 by the 2nd respondent, directing the petitioner not to leave the territory of India by land, sea or air, unless he furnishes a tax clearance certificate issued by the second respondent - HELD THAT:- As already found that the basis tax liability due from the Company had been wiped off by the order of the Appellate Tribunal and the said proceedings are now to be considered afresh by the assessing officer. As of now the Company cannot be stated to be liable to pay any amount of tax, warranting imposition of any order, either u/s 179 or to be imposed with a restrictive order against the Directors of the Company or any other person under Section 230 of the Act. Therefore, the latter liability, referred to in Ext.P20, is no longer in existence. As far as, the individual liability made mention in Ext.P20 is concerned, both Counsel pointed out and rightly too, that, petitioner had cleared that liability on the basis of the modified orders issued. Thus, it is explicit that both liabilities made mention in Ext.P20 is no longer in force, warranting the issuance of an order under Section 230 of the Act or its continuance for the time being. Ext.P20 is liable to be set aside. Therefore the order dated 19.07.2018 issued under Section 230 of the Act is quashed.
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