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NEUTRAL CITATION

C/SCA/1877/2019 JUDGMENT DATED: 06/07/2026

0.3748581119440749

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

R/SPECIAL CIVIL APPLICATION NO. 1877 of 2019

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE A.S. SUPEHIA

and

HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI

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Approved for Reporting Yes No

√

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ANANDHI P NAIG & ORS.

Versus

UNION OF INDIA & ANR.

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Appearance:

ARJUN R SHETH(7589) for the Petitioner(s) No. 1,2,3,4,5

MR RUTVIJ R PATEL(10615) for the Respondent(s) No. 2

RULE THROUGH SPEED POST NOT RECEIVED BACK for the

Respondent(s) No. 1

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CORAM:HONOURABLE MR. JUSTICE A.S. SUPEHIA

and

HONOURABLE MS. JUSTICE VAIBHAVI D. NANAVATI

Date : 06/07/2026

ORAL JUDGMENT

(PER : HONOURABLE MR. JUSTICE A.S. SUPEHIA)

1. By way of present writ petition, the petitioners have prayed for

quashing and setting aside the impugned Show-Cause Notice dated

14.12.2018 and impugned order dated 31.12.2018 passed under

Section 179 of the Income Tax Act, 1961 (for short ‘ the Act’) and the

impugned Notice of demand under Section 156 of the Act.

2. The Coordinate Bench while issuing the Notice and granting the

ad-interim relief vide order dated 31.01.2019 had specifically recorded

contentions made by the learned Counsel appearing on behalf of the

petitioners to the extent that the petitioners were granted short time

in filing the reply i.e. less than two days to the Show-Cause Notice

dated 14.12.2018, as they had received the said Notice belatedly. The

other ground canvased and recorded in the order is related to the

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NEUTRAL CITATION

C/SCA/1877/2019 JUDGMENT DATED: 06/07/2026

0.3748581119440749

company in question, is that it is a public limited company and not a

private limited company, hence, the jurisdiction under Section 179 of

the Act could not have been invoked was also recorded.

2.1 So far as the first contention regarding less than two day’s time,

available for the petitioners to file their reply to the impugned Show-

Cause notice, we have noticed that the petitioners have categorically

made such statement at paragraph no. 5 of the writ petition. The

averments made at paragraph no.5 reflect that the petitioner nos.1

and 2 had received the Show-Cause Notice issued under Section 179

of the Act on 22.12.2018, whereas, no notice have been received so far

as petitioner nos. 3 to 5 are concerned, for the A.Y 2008-2009 and

A.Y 2011-2012. This assertion made by the petitioners in paragraph

no. 5 has not been dealt in the affidavit in reply filed by the

respondent and the same remains uncontrovered. Thus, the

petitioners who were supposed to file their reply by 24.12.2018 before

10:30 p.m. as mentioned in the impugned Show-Cause Notice dated

14.12.2018 got only two day’s time to file the reply. Ultimately, the

petitioners filed their reply on 31.12.2018, wherein they have

categorically contended that the provision of Section 179(1) of the Act,

will not be applicable to the petitioners, since, the company of which

they are Directors is a Public Limited Company and not a Private

Limited Company.

2.2 Various Judgments of the High Courts as well as Supreme

Court have been relied upon by the petitioners in their reply. It

appears that thereafter, by the impugned order passed under Section

179 of the Act the respondents have recorded that the assessee-

Company is a closely held Private Limited Company and hence, the

Directors are responsible for payment of the outstanding demand and

recovery proceedings for the assessment years mentioned therein, as

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NEUTRAL CITATION

C/SCA/1877/2019 JUDGMENT DATED: 06/07/2026

0.3748581119440749

the assessee-Company d