1992 (2) TMI 3

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.... the assessment years 1977-78 to 1982-83, assessments were completed on the company and a demand of Rs. 56 lakhs was raised. This amount was not paid for various reasons and so, on April 30, 1989, the Deputy Commissioner passed an order holding the appellants, who are directors of the company liable to pay the tax due from the company in view of the provisions of section 179 of the Income tax Act,....

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....ons and the appeals before the Division Bench (see [1991] 192 ITR 90) were also unsuccessful. Before the Commissioner of Income-tax as well as before the High Court, the appellants had produced a letter received by the company from the Registrar of Companies recognising that the company has become a public limited company by virtue of section 43A(1A) of the Companies Act, with effect from October....

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....ber 1, 1975. As already mentioned, the arrears sought to be recovered from the appellants relate to the assessment years 1977-78 to 1982-83. Obviously, the company being a public limited company, proceedings against the directors for recovery of the tax due from the company cannot be taken, and certainly not proceeded with, under section 179 of the Income-tax Act, 1961. We need hardly say article ....