https://www.taxtmi.com/caselaws?id=799054 Section 179(1) imposes personal liability for unrecovered tax dues only on directors of a private company where non-recovery is attributable to their gross neglect, misfeasance or breach of duty. An incorporated unlisted public company does not become a private company merely because shareholding is concentrated or its shares were not publicly offered. Corporate veil principles require exceptional circumstances, such as use of the company to siphon income or create undisclosed assets, before extending liability beyond the statutory scope. Authorities must consider a director's explanation, record a reasoned causal link between the director's conduct and non-recovery, and disclose adverse material to preserve natural justice. en-us Fri, 11 Sep 2026 00:00:00 +0530 Wed, 16 Sep 2026 08:38:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=799054 Section 179(1) imposes personal liability for unrecovered tax dues only on directors of a private company where non-recovery is attributable to their gross neglect, misfeasance or breach of duty. An incorporated unlisted public company does not become a private company merely because shareholding is concentrated or its shares were not publicly offered. Corporate veil principles require exceptional circumstances, such as use of the company to siphon income or create undisclosed assets, before extending liability beyond the statutory scope. Authorities must consider a director's explanation, record a reasoned causal link between the director's conduct and non-recovery, and disclose adverse material to preserve natural justice. Case-Laws Income Tax Fri, 11 Sep 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=799054