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February 2025

Recovery of tax — Company — Liability of director of private company — Order u/s. 179 — Condition precedent — Inability to recover tax dues from company.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

80. Manjula D. Rita and Bhavya D. Rita vs. Pr. CIT:

[2025] 472 ITR 116 (Bom):

A. Y. 2012-13: Date of order: 19th June, 2023

Ss. 179 and 264 of ITA 1961:

Recovery of tax — Company — Liability of director of private company — Order u/s. 179 — Condition precedent — Inability to recover tax dues from company.

The petitioners are two out of the four legal heirs of one late Dinesh Shamji Rita (the deceased), who was a director of Bhavya Infrastructure India Private Limited (the company) during the A. Y. 2012-13. The other two legal heirs are married daughters of the deceased and petitioner No. 1. The petitioners are impugning an order dated 9th March, 2020 passed by respondent No. 1 u/s. 264 of the Income-tax Act, 1961 (the Act) rejecting the petitioner's application. The order impugned came to be passed while rejecting an application filed by the petitioners impugning an order dated 7th May, 2018 passed under section 179(1) of the Act.

The company had filed its return of income for the A. Y. 2012-13 on 29th September, 2012 declaring an income of ₹62,47,290. An assessment order u/s. 143(3) of t

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