TaxTMI 
TaxTMI 
2019 (7) TMI 31
X X X X Extracts X X X X
X X X X Extracts X X X X
....aid Company"). For the assessment year 2015-16, the said company had filed its return of income. The Assessing Officer passed the order of assessment on said return on 30.12.2017 which gave rise to a tax demand of Rs. 36.99 Crores (rounded off). The company filed an appeal before the Appellate Commissioner. When such appeal was pending, respondent No. 1 issued a notice dated 26.6.2018 calling upon the petitioner why an order under Section 179 of the Act should not be passed treating the petitioner jointly and severally liable for payment of tax dues of the said Company. The petitioner replied to the show cause notice under a communication dated 14.7.2018 and raised several contentions. The principal contentions of the petitioner were that....
X X X X Extracts X X X X
X X X X Extracts X X X X
....or from any other company in respect of any income of any previous year during which such other company was a private company cannot be recovered, then, every person who was a director of the private company at any time during the relevant previous year shall be jointly and severally liable for the payment of such tax unless he proves that the non-recovery cannot be attributed to any gross neglect, misfeasance or breach of duty on his part in relation to the affairs of the company. (2) Where a private company is converted into a public company and the tax assessed in respect of any income of any previous year during which such company was a private company cannot be recovered, then, nothing contained in sub-section (1) shall apply to any ....