https://www.taxtmi.com/caselaws?id=425754 The HC quashed the tax demand orders against the petitioner, a director, under section 179 of the Income Tax Act, 1961. It ruled that the director's liability arises only if the company fails to pay tax dues and operates more like a private entity. The court emphasized the necessity of exhausting all recovery options from the company before holding directors personally liable. It also criticized the tax authority for not adhering to principles of natural justice, directing a fresh assessment if dues remain unpaid after asset liquidation, ensuring procedural fairness in the proceedings. en-us Tue, 26 Jul 2022 00:00:00 +0530 Wed, 13 Dec 2023 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=425754 The HC quashed the tax demand orders against the petitioner, a director, under section 179 of the Income Tax Act, 1961. It ruled that the director's liability arises only if the company fails to pay tax dues and operates more like a private entity. The court emphasized the necessity of exhausting all recovery options from the company before holding directors personally liable. It also criticized the tax authority for not adhering to principles of natural justice, directing a fresh assessment if dues remain unpaid after asset liquidation, ensuring procedural fairness in the proceedings. Case-Laws Income Tax Tue, 26 Jul 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=425754