(This writ petition is filed under Articles 226 and 227 of the Constitution of India with a prayer to quash the order passed by the respondent issued under Section 179 of the Income Tax Act, 1961. Deputy Commissioner of Income Tax dated 05.10.2006 vide Annexure ‘A’.)

The petitioners are before this Court for the second time. The genesis of the petitioners’ case can be summarized as follows: The first petitioner is the Managing Director and petitioners 2 to 4 are the Directors of a Private Limited Company under the name and style of H.E. Distilleries Private Limited. The company was incorporated in the year 1990 and commenced its operation from the year 1991. It appears, the Company, right from day one has been incurring loss and never really took off. The officers of the respondents on 18.01.2001 armed with a warrant of authorization, conducted a search in the premises of the company. During the course of the said search operation several documents were seized by the department. It appears, a statement of the fourth petitioner was also recorded who is a Director of the company during the course of the said search proceedings. Pursuant to the said search, an order of asse