1998 (12) TMI 61

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....e assessment years 1986-87 and 1987-88. The present petitioner was a director of the said private company during the previous year relevant to the aforesaid assessment year. The order directing recovery from the present petitioner as director of the said company during the relevant previous year proceeds on the premise, "since the recovery of the demand from the company was found difficult". In response to show-cause notice the petitioner has stated that demand has been created after handing over all the assets and liabilities to the new director as per the agreement made between Shri Bhagwandas and Bholabhai V. Patel and all the assets and liabilities have been taken over by Shri Bholabhai V. Patel, presently the director. It further proce....

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....6, was required to be discharged by the previous directors hence the recovery is directed towards the previous directors. As to the plea of the petitioner that there is dispute between the parties to the agreement about discharging that part of the liability, the affidavit states that the petitioner's allegation to the contrary is not tenable. In sum and substance, by perusing the affidavit-in-reply, it is apparent that the respondents instead of making any effort to recover the amount of tax due from the said private company from the properties belonging to the company, about which there does not appear to be any dispute, the Revenue authorities are seeking to recover the amount from the petitioner in pursuance of the agreement between the....