VAKIL CHAND JAIN Vs. TAX RECOVERY OFFICER

JUDGEMENT

(1.) THE petitioner, at the relevant time, was a director of respondent No. 4 company, which is declared as a defaulter under the provisions contained in the IT Act, 1961 (hereinafter to be referred to as "the Act"). It is contended by the petitioner is sufficient material to show that though he resigned as a director, in view of the decision of the board of directors, he continues to be liable along with other directors. We are not required to examine this aspect of the matter at this stage. Suffice it to say that the TRO pointed out to the petitioner about the misfeasance and negligence and that the petitioner was involved in an excise matter wherein a fine of Rs. 1,500 was imposed. The TRO also pointed out that the petitioner's calling upon the petitioner to show cause as to why action should not be taken. We reproduce the last paragraph of this notice which reads as under : "In view of the above, you are requested to put your point of view, if any, upon the abovesaid reply given by the accept your liability for the payment of the taxes under s. 179 of the IT Act."

(2.) BEFORE us, the learned counsel for the petitioner submitted that the petitioner did not receive this letter. We are not examining the details of the defence put forth by the petitioner. We have examined r. 11 as well as r. 86 in Sch. II of the said Act where the procedure for recovery of taxes is indicated.

(3.) WE think it is just and proper that the petitioner's point of view that is reflected in the affidavit and the submissions made before us be pleaded before the TRO by the petitioner and the TRO shall examine the same and pass an order in accordance with law within a period of three months. However, it goes without saying that the petitioner shall place all the material before the TRO within a period of two weeks from today and the petitioner shall, in the first instance, being influenced by the order that we have passed today and shall examine all the aspects that may be placed before him by the petitioner. The writ petition stands disposed of accordingly.