Court Confirms Directors' Liability for Company Debts u/s 179(1) of Income Tax Act Due to Insufficient Defense.

Court Confirms Directors' Liability for Company Debts u/s 179(1) of Income Tax Act Due to Insufficient Defense. https://www.taxtmi.com/highlights?id=65870 Recovery of the amounts from the company and its directors - Liability of directors - Section 179(1), in itself, grants the Directors the liberty to prove that the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty on their part in relation to the affairs of the company. In the present case, the replies filed by the petitioners to the show cause notices prior to passing of the impugned orders merely contain a bald assumption to this effect. - Recovery confirmed - HC en-us Thu, 29 Sep 2022 18:33:23 +0530 Thu, 29 Sep 2022 18:33:23 +0530 TaxTMI RSS Generator Court Confirms Directors' Liability for Company Debts u/s 179(1) of Income Tax Act Due to Insufficient Defense. https://www.taxtmi.com/highlights?id=65870 Recovery of the amounts from the company and its directors - Liability of directors - Section 179(1), in itself, grants the Directors the liberty to prove that the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty on their part in relation to the affairs of the company. In the present case, the replies filed by the petitioners to the show cause notices prior to passing of the impugned orders merely contain a bald assumption to this effect. - Recovery confirmed - HC Highlights Income Tax Thu, 29 Sep 2022 18:33:23 +0530 https://www.taxtmi.com/highlights?id=65870