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2023 (5) TMI 226 - HC - Income TaxLiability of directors of private company - order u/s 179 made against the petitioner for pending tax dues of Pvt. Ltd.company - as argued no efforts undertaken to recover money from the Company itself and further non-recovery of said dues are not attributable to any gross neglect, misfeasance or breach of duty by the petitioner in the affairs of the Company and as such, impugned notice is vague, reflecting no such condition precedent - HELD THAT:- There is no discussion on the elements which are basic in nature for invoking jurisdiction under Section 179 of the Income Tax Act, there is no subjective satisfaction on such and additionally the notice itself is found to be vague and as such, apparently, it appears that the action is not sustainable in view of the settled proposition of law. The order which has been passed by the authority is without dealing with the basic elements of Section 179 of the Income Tax Act and the same being suffering from the vice of non-application of mind, we may deem it proper to quash the same, of course with liberty to the respondent authority to pass a fresh order after issuing proper notice to the petitioner which must indicate briefly the steps to be taken by the department to recover the tax dues from the private limited company in default and its failure to recover is possible to be attributed to the petitioner. We may also deem it proper to quote the proposition of law laid down by the Hon’ble Apex Court on the issue of proper notice being noticed while initiating the step. We hereby allowed the petition by quashing and setting aside the notice as well as order passed by the respondent authority and while allowing the petition we reserve liberty for respondent by observing that it shall be open for the respondent to issue fresh notice for the purpose of proceedings against the petitioner under Section 179 of the Income Tax Act and shall pass a fresh order in accordance with law on the subject in question, if it deems fit.
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