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2010 (4) TMI 218 - HC - Income TaxRecovery of dues – personal liability of director – jointly or severalty liability - The petitioner was appointed as an Additional director of a company by the name of Yazad Investment & Finance Private Limited on 2 January 1987. During the period when he was a director, the petitioner signed audited accounts of the company on 30 June 1987 and 30 June 1988. The petitioner resigned as a director of the company on 14 October 1989. - The Assessing Officer initiated proceedings under Section 179 of the Income Tax Act, 1961 against the petitioner on the ground that though there was a demand of Rs.25.64 lakhs against the company for the period between 1990-1991 to 1995-1996, the dues could not be recovered from the company. – Held that: the question as to whether the non-recovery of tax from the assessee company was or was not a result of a gross neglect, misfeasance or breach of duty on the part of the petitioner in relation to the affairs of the company ought to have been considered by the Assessing Officer having regard to the submissions which have been urged by the petitioner. This issue would raise a mixed question of law and fact, upon which an adequate determination cannot be found in the order passed by the Assessing Officer. – matter remanded back to AO for fresh determination
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