( 1 ) RULE. Service of rule is waived by learned counsel for the respondent. At the request of learned counsel for the parties the matter is finally heard today.

( 2 ) THE petitioner challenges order (Annexure A) dated 29. 10. 1998 purported to have been made u/s 179 of the Income-tax Act, 1961.

( 3 ) AS per the order, a demand of Rs. 9,82,050/were outstanding against a company named Samir Theatre Pvt. Ltd. for A. Y. 1986-87 and 1987-88. The present petitioner was a director of the said private company during the previous year relevant to the aforesaid assessment year. The order directing recovery from the present petitioner as director of the said company during the relevant previous year proceeds on the premise, "since the recovery of the demand from the company was found difficult". In response to show-cause notice the petitioner has stated that demand has been created after handing over all the assets and liabilities to the new director as per the agreement made between Shri Bhagwandas and Bholabhai V. Patel and all the assets and liabilities have been taken over by Shri Bholabhai V. Patel, presently the Director. It further proceeds that as the director petitioner