Back
SAUMITRA DAYAL SINGH, DONADI RAMESH
Pranay Dhabhai – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Heard Shri. Subham Agarwal, learned counsel for the petitioner and Shri. Ankur Agarwal, learned Standing Counsel for the revenue.
2. Present petition has been filed by the petitioner to resist the recovery of tax dues of the company M/S Global Brands Enterprise Solutions Private Limited (hereinafter referred to as the Company-under- liquidation) a duly incorporated company, under the Companies Act, 1956.
3. Upon hearing learned counsel for the parties and perusal of record, it transpires that the Delhi High Court appointed the Official Liquidator as the Provisional Liquidator of the Company-under-liquidation on 09.09.2013. In October, 2013 the Provisional Liquidator took over the assests of the Company-under-liquidation. Thereafter, on 17.02.2014, 28.03.2015 and 26.03.2016, the assessing authority of the Company- under-liquidation passed the first ex-parte assessment order against A.Ys. 2010-11, 2011-12, 2012-13. Details of the same as given in the Counter Affidavit filed by the revenue are as below:-
| Date of Assessment order | Assessment Year | Demand Created |
| 17.02.2014 | 2010-11 (UP) | Rs. 1,59,18,761/- |
| 17.02.2014 | 2010-11 (Central) | Rs. 13,50,000/- |
|
| ||
Directors of a company under liquidation cannot be held personally liable for tax dues unless specific statutory provisions exist; the doctrine of lifting the corporate veil requires substantial evid....
Directors are not personally liable for a company's tax dues unless proven negligent; recovery against a deceased director is unsustainable.
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 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....
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' liability for tax dues is determined based on the type of company (private or public) as per relevant provisions in tax laws and Company Law.
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
