TMI Blog2009 (7) TMI 673X X X X Extracts X X X X X X X X Extracts X X X X ..... hority arrived at a finding in this regard as borne out by the order passed and as such the statutory requirement was complied with, therefore the order passed was not in contravention of the specific stipulation under section 179. - 3175/08 - - - Dated:- 14-7-2009 - P. R. RAMACHANDRA MENON J. V. Philip Mathew for the petitioner. George K. George and Jose Joseph for the respondent. Judgment: P. R. Ramachandra Menon J .- The petitioner is one and the same in all these three cases pertaining to three different assessment years 1993-94, 1994-95 and 1995-96. The challenge is mainly against exhibits P2, P3 and P4 proceedings/orders taken/issued by the Departmental authorities under the Income-tax Act whereby the petiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emedy was to file appropriate review petitions, if aggrieved in any manner. This led to filing of three separate review petitions (R. P. No. 474 of 2009 in respect of I. T. A. No. 2 of 2005, R. P. No. 489 of 2009 in respect of I. T. A. No. 9 of 2005 and R. P. No. 492 of 2009 in respect of I. T. A. No. 12 of 2005). It is pointed out that the review petitions are still pending before this court. 4. The learned counsel for the petitioner submits that in response to the notice dated August 23, 2006, issued to the petitioner in his capacity as the director of the company, a detailed statement of objection was submitted. However, without considering the same in the proper perspective, exhibit P2 order was passed by the second respondent, turnin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upreme Court reported in Builders Supply Corporation v. Union of India, AIR 1965 SC 1061. The learned counsel also made reference to the power vested with the Departmental authorities and the mode of recovery, as contemplated under sections 226 of the Income-tax Act, 1961, as well. 6. The learned standing counsel for the Department submits that the proceedings under section 179 of the Act have been taken in conformity with the statutory requirements. It is also pointed out that a specific finding has been arrived at that the due amount could not be recovered from the company as observed in very opening paragraph of exhibits P2 itself. A similar reference is made in a different context in the very same order. Reference is also made to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of the comparative rights and liberties between the "secured creditors" and the Income-tax Department. On the other hand, as very much discernible from paragraph 31 and elsewhere, it was clearly a dispute between the "ordinary creditors" and the Income-tax and after weighing the "plus" and "minus" points, it was categorically declared that the rights and liberties of the Income-tax Department would prevail over the rights of the other creditors. 8. The learned standing counsel for the Department submits that the position in a case involving the rights and liberties of "secured creditors" stands entirely on a different footing, in view of the conspicuous absence of enabling provision. The Income-tax Department can have only a lesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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