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2018 (1) TMI 749 - HC - Income TaxLiability of directors of private company in liquidation - condition precedent to exercise jurisdiction under Section 179 - Held that:- Admittedly, in this case no particulars of steps taken to recover the dues from the defaulting Company were communicated to the Petitioner nor indicated in the impugned order. In this case we find that except a statement that recovery proceedings against the defaulting assessee had failed, no particulars of the same are indicated, so as to enable the Petitioner to object to it on facts. In the above view, we set aside the impugned order dated 31st December 2015. This as the condition precedent to exercise jurisdiction under Section 179 (1) of the Act is not satisfied. At no time has the Petitioner been given a chance to meet the Revenue's case that it has taken steps to recover the amount from the defaulting Private Limited Company so as to meet the jurisdictional condition precedent before passing an order under Section 179 (1) - AO is at liberty to pass a fresh order after issuing the appropriate notice to the Petitioner indicating briefly, the steps taken by the department to recover the tax dues from the defaulting Private Limited Company and its failure to recover the same
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