Back
DHIRAJ SINGH THAKUR, VALMIKI SA MENEZES
Jagesh Savjani – Appellant
Versus
Union Of India – Respondent
JUDGMENT
Valmiki Sa Menezes, J. - Rule. Rule made returnable forthwith. Heard finally by consent of the parties present before us and who have waived service of notice, the petition is heard finally.
2. This is a writ petition filed under Article 226 of the Constitution of India seeking the quashing and setting aside of show cause notices under Section 179 of the Income Tax Act,1961, (for short 'the Act') dated 15.10.2019, 24.02.2020, 19.03.2020, 04.12.2020 and order dated 14.12.2020 issued by the respondent No.2, as being contrary to law.
3. It is the petitioner's case as averred in the petition, that he had received show cause notices dated 24.02.2020, 19.03.2020 and 04.12.2020 from the respondent No.2 purportedly invoking powers under Section 179 of the Act. He further avers that the issuance of a similar notice dated 15.10.2019 also impugned herein by the respondents came to his knowledge from the reply filed by the respondents, which notice he claims, was never served upon him. The petitioner has averred that he had filed an affidavit-in-reply dated 19.03.2020 to the income tax authorities stating therein that the petitioner had not attended any Board meetings of M/s. White Water
The main legal point established in the judgment is that the Assessing Officer must disclose the necessary jurisdictional facts and the steps taken to recover tax dues from the delinquent company in ....
Directors of a private company cannot be held liable for the company's tax dues if they prove that the non-recovery cannot be attributed to any gross neglect, misfeasance, or breach of duty on their ....
The central legal point established in the judgment is the burden of proof on a director to establish lack of gross neglect, misfeasance, or breach of duty in relation to the affairs of the company t....
Directors can only be liable for tax dues if the company has no recoverable assets and negligence is proven; procedural fairness in claims against past Directors is essential.
The central legal point established in the judgment is the requirement for proper evidence and adherence to principles of natural justice in proceedings under section 179 of the Income Tax Act, as we....
Directors are not personally liable for a company's tax dues unless proven negligent; recovery against a deceased director is unsustainable.
The burden of proof lies on the director to show non-recovery of tax dues was not due to gross neglect, misfeasance, or breach of duty, as per Section 179(1) of the Income Tax Act.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
