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K. R. SHRIRAM, FIRDOSH P. POONIWALLA
Manjula D. Rita – Appellant
Versus
Principal Commissioner of Income Tax 12 – Respondent
JUDGMENT :
K.R. Shriram, J.
1. Petitioners are impugning an order dated 9th March 2020 passed by respondent no.1 under Section 264 of the Income Tax Act, 1961 (the Act) rejecting petitioners’ application.
2. The order impugned came to be passed while rejecting an application filed by petitioners impugning an order dated 7th May 2018 passed under Section 179(1) of the Act.
3. 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 Assessment Year 2012-2013. The other two legal heirs are married daughters of the deceased and petitioner no.1.
4. The company had filed its return of income for Assessment Year 2012-2013 on 29th September 2012 declaring an income of Rs.62,47,290/-. The return of income was processed under Section 143(1) of the Act and was selected for scrutiny assessment and accordingly, notice under Section 143(2) of the Act was issued. An assessment order under Section 143(3) of the Act came to be passed on 30th March 2015 by which several additions were made, i.e., a sum of Rs.18,37,21,188/- under Section 68 of the Act for unexplained cash credit
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 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 ....
Valid service of notice under section 148 is essential for jurisdiction; failure to serve invalidates the assessment order.
The court ruled that an order under Section 179 cannot stand if the underlying demand against the company is set aside, necessitating a fresh evaluation by the tax authority.
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....
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