INCOME TAX ACT, 1961

Section 179

Liability in special cases - Proceedings against directors of private company - Auction of immovable properties -

Against recovery proceedings initiated under section 179 to directors of private company in liquidation, it was contended that instead of recovering amount in tune with provisions of section 179, Department proceeded to put immovable properties to auction. Held: It was too late in the day for writ-applicants to redress any grievance of any nature having not challenged the order passed under section 179 and having permitted the order to attain finality. It was not appropriate for Court to disturb entire auction proceedings undertaken by Department. Company had defaulted in payment of income tax to tune of Rs. 1907.90 Lakh. In such circumstances, even if say of the writ-applicants was accepted that the company had to recover an amount of Rs. 694.60 Lakh, the company would not be in a position to make the payment of the outstanding tax liability. Therefore, when order passed under section 179 has attained finality and was implemented with auction of the immovable properties, no interference was called for at that belated stage.

REFERRED :

FAVOUR : Against the petitioner

A.Y. :

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