Stay abreast with the latest developments in the professional domain along with in-depth analysis through the monthly BCA Journal. Get access to an engaging library of researched publications from the BCAS stable.
Learn MoreExplore past issues of BCA Journal & indulge in a treasure trove of high-quality professional content across format of print, videos & learning events from the BCAS stable.
Learn More
The Assessing Officer passed order u/s. 179 against the directors for recovery of the tax dues of the private company. The Gujarat High Court allowed the writ petition filed by the petitioner challenging the said order and held as under:
“The sole ground on the basis of which the order u/s. 179 had been passed was that the directors were responsible for the non-filing of returns of income and that the demand had been raised due to the inaction on the part of the directors. Clearly, therefore, the entire focus and discussion of the ITO in the order was in respect of the directors’ neglect in the functioning of the company when the company was functional. On a plain reading of the order, it was apparent that nothing had been stated therein regarding any gross negligence, misfeasance or breach of duty on the part of the directors due to which the tax dues of the company could not be recovered. The order u/s. 179 was not valid.”
