https://www.taxtmi.com/caselaws?id=794738 Recovery from directors under Section 179 of the Income-tax Act requires a meaningful opportunity to respond and prior disclosure of the foundational facts supporting veil-piercing. The notice here allowed only a very short time for reply, and that deficiency was treated as denying a fair chance to place the defence before the authority. The material also failed to set out adequate particulars showing why a company styled as public limited should nevertheless be treated as closely held, or to explain the basis for fastening liability on directors. The notice, order and recovery steps were therefore held unsustainable, with the matter remitted for fresh notice and reconsideration. en-us Mon, 06 Jul 2026 00:00:00 +0530 Fri, 10 Jul 2026 07:39:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=794738 Recovery from directors under Section 179 of the Income-tax Act requires a meaningful opportunity to respond and prior disclosure of the foundational facts supporting veil-piercing. The notice here allowed only a very short time for reply, and that deficiency was treated as denying a fair chance to place the defence before the authority. The material also failed to set out adequate particulars showing why a company styled as public limited should nevertheless be treated as closely held, or to explain the basis for fastening liability on directors. The notice, order and recovery steps were therefore held unsustainable, with the matter remitted for fresh notice and reconsideration. Case-Laws Income Tax Mon, 06 Jul 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=794738