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April 2026

Collection and recovery of tax — Company —Recovery from director of the Company — Attachment of the Bank Account of the wife of the Director — Unjustified — S. 179 is applicable to the Director of the Company — Cannot be extended to the wife of the Director of the Company.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 2 mins

2. Manjulaben Mafatlal Shah vs. TRO:

(2026) 183 taxmann.com 746 (Bom.):

Date of order 17/02/2026:

Ss. 226 r.w.s. 179 of ITA 1961:

Collection and recovery of tax — Company —Recovery from director of the Company — Attachment of the Bank Account of the wife of the Director — Unjustified — S. 179 is applicable to the Director of the Company — Cannot be extended to the wife of the Director of the Company.

A notice u/s. 226(3) was issued upon the Assessee attaching the bank account of the Assessee in respect of liability of one Shri Ram Tubes Private Limited. The Assessee was the wife of the Director of the said Shri Ram Tubes Private Limited and she had nothing to do with the company. She was neither the Director, nor the Shareholder nor the employee of the said company. In view of the facts, it was the contention of the Assessee that the Department did not have the power to attach the bank account of the Assessee which stood in her sole name.

The Assessee challenged the notice and the action of the Department by way of writ petition filed before the Bombay High Court. The High Court allowed the petition and held as follows:

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