Personal liability for company tax dues cannot be assumed against a director without notice or legal basis.

Recovery proceedings against a company's director could not be sustained where the assessment and demand were raised only against the company and no basis was shown for fastening personal liability on the director. Proceeding without notice also offended natural justice. The recovery notices and mutation entry were quashed, and the matter was remitted for the authority to examine the director's claim and take action in accordance with law.

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Issues: Whether the recovery notices and mutation proceedings issued against the petitioner, a director of the assessee-company, could be sustained when no notice was issued to him and the liability stood fastened on the company.

Analysis: The assessment and demand were against the company, and the materials did not show any basis to treat the petitioner as personally liable for the company's tax dues. The record also showed that the petitioner was proceeded against without notice, which offended the principles of natural justice. In the context of a company, liability for tax recovery could not be fastened on a director merely on the assumption that he was the owner of the erstwhile company, and the authority was required to examine the petitioner's claim before taking recovery action.

Conclusion: The recovery notices and mutation entry were quashed, and the matter was remitted to the first respondent to examine the petitioner's claim and proceed in accordance with law.

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