RAJEEV BEHL Vs. PRINCIPAL COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Present writ petition has been filed challenging the orders dtd. 1/4/2021 passed under Sec. 264 of the Income Tax Act, 1961 [for short 'the Act'] and 29/1/2018 under Sec. 179 of the Act by respondent No. 1 and respondent No.2 respectively. Petitioner seeks a direction to restrain the respondents from recovering the outstanding demand of Rs.5,89,68,019.00 in the case of Real tech Group from the petitioner, pertaining to the Assessment Years 2006-07 to 2009-10.

(2.) The relevant facts of the present case are that the petitioners along with two other promoters, namely, Sh. Pankaj Dayal and Sh. Yogesh Gupta formed and promoted the Realtech group of companies in 2005 comprising M/s Realtech Projects Pvt. Ltd., M/s Real Infrastructure Pvt. Ltd., M/s Vivid Builders Pvt. Ltd. and M/s Realtech Constructions Pvt. Ltd.

(3.) During the year 2010-11, allegedly disputes arose amongst the promoters and to settle the said inter se disputes a Memorandum of Understanding (MOU) was executed on 2/6/2011. In terms of the MOU, the petitioner allegedly resigned as Director from M/s Vivid Builders Pvt. Ltd., M/s Realtech Construction Pvt. Ltd. as well as some other group companies of Realtech group and stopped participating in the m anagement of the Realtech group. It was also allegedly agreed in the MOU that all the income tax liabilities in respect of Realtech Construction Pvt. Ltd, Realtech Projects Pvt. Ltd., Vivid Builders Pvt. Ltd. and Realtech Infrastructure will be borne and paid by Mr. Pankaj Dayal (one of the Directors). Mr. Pankaj Dayal was allegedly separately allocated 17000 sq. ft. in City EmporiaMall, Chandigarh to meet the tax liabilities of Realtech group of companies.