TMI Blog1980 (7) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... verted into public company, ten years later in 1969. During the assessment years 1959-60 to 1963-64, of which the case is concerned only with 1959-60, 1960-61 and 1963-64, the company's directors were the petitioner and two others. (The latter two resigned their offices in 1969). The petitioner died during the pendency of the original petition and is now represented by his legal representatives, additional petitioners Nos. 2 to 8. We will, however, confine our reference to the petitioner, who alone counts in these proceedings. The company was assessed to income-tax, surcharge and corporation tax for the assessment years 1959-60, 1960-61, 1961-62, 1962-63 and 1963-64, and reassessments, to which no reference is called for. On June 9, 1975, b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner, Ernakulam. Ex. P-11 is the memorandum of revision and Exs. P-12 and P-13 are the letters sent by the petitioner to the second respondent raising additional grounds in support of the revision. By the order, Ex. P-14, dated November 9, 1976, the second respondent dismissed the revision, confirming the order, Ex. P-7. In the wake of this order, the first respondent issued certificates of recovery and on the basis of the certificates, the TRO, Ernakulam, served on the petitioner the notices of demand, Exs. P-15, P-16 and P-17, dated January 3, 1979, for recovery of the arrears of tax mentioned above and the process fee of Rs. 1.50 in respect of each notice. Section 179 as it stood before it was amended by the T.L. (Amend.) Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion in the Indian I.T. Act, 1922. It imposes a vicarious liability upon the directors in respect of the tax arrears of the companies, although the companies themselves are entities independent of the directors. The liability is linked to the income of the previous year which has been assessed to tax. From its very scheme the section is prospective and there is nothing in its wording that would attract its provisions to the previous year before the commencement of the Act on April 1, 1962. The previous years relative to the assessment years 1959-60 and 1960-61 are far prior to the commencement of the Act and are clearly outside the sweep of s. 179. The petitioner's contention that he could not be saddled with the tax liability of the compan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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