TMI Blog1998 (12) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... s a director of the said private company during the previous year relevant to the aforesaid assessment year. The order directing recovery from the present petitioner as director of the said company during the relevant previous year proceeds on the premise, "since the recovery of the demand from the company was found difficult". In response to show-cause notice the petitioner has stated that demand has been created after handing over all the assets and liabilities to the new director as per the agreement made between Shri Bhagwandas and Bholabhai V. Patel and all the assets and liabilities have been taken over by Shri Bholabhai V. Patel, presently the director. It further proceeds that as the director-petitioner has failed to show that non-r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he recovery is directed towards the previous directors. As to the plea of the petitioner that there is dispute between the parties to the agreement about discharging that part of the liability, the affidavit states that the petitioner's allegation to the contrary is not tenable. In sum and substance, by perusing the affidavit-in-reply, it is apparent that the respondents instead of making any effort to recover the amount of tax due from the said private company from the properties belonging to the company, about which there does not appear to be any dispute, the Revenue authorities are seeking to recover the amount from the petitioner in pursuance of the agreement between the outgoing management and the incoming management. In other words, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry for the Revenue to establish that such recovery cannot be made against the company and then and then alone it can reach the directors who were responsible for the conduct of business during the previous year in relation to which liability exists. Neither in the order nor in the affidavit any such assertion has been made that in spite of making efforts against the company, it is not possible to recover the amount from the company by reaching its assets. On the other hand, there is clear indication that section 179 is being put to use by the Revenue authorities to resolve the dispute between the erstwhile directors and the present incumbent about the terms of the agreement between them. The Income-tax Act has not assigned any such role t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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