2026 (1) TMI 1126

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n Projects Pvt. Ltd., challenging the validity of order dated 29.08.2018 passed by the second respondent whereby the order was passed under Section 179 of the Income Tax Act, 1961 ("the Act", for short). 2. The facts that are made out are that M/s.DS Kulkarni Developers Ltd., was in default to the Department of tax and interest upon assessment for the Assessment Year 2016-17. 3. It is further made out that notice under Section 226 (3) of the Income Tax Act, 1961 was issued to the company requesting to pay the Income Tax Department, any amount due from the Company held on account of assessee M/s.DS Kulkarni Developers Ltd. The order was passed directing the petitioner to pay outstanding taxes immediately, failing which coercive steps w....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mmencing before the 1st day of April, 1962.] [Explanation.-For the purposes of this section, the expression "tax due" includes penalty, interest or any other sum payable under the Act.] 5. It is the contention of learned Senior Counsel appearing on behalf of the petitioner that before Section 179 is invoked, it is necessary that there has to be an affirmative finding that tax dues "cannot be recovered" and only upon such contingency having occurred, proceedings could be initiated under Section 179 against every person who was the Director of the company at any time during the relevant previous year. 6. It is further submitted that liability under Section 179 as regards the Director vis-à-vis Company is not co-extensive....