KUSHAL VINODCHANDRA MEHTA Vs. THE INCOME TAX OFFICER

JUDGEMENT

(1.) By way of this petition under Article 226 of the Constitution of India, the petitioner has prayed for quashing and setting aside the impugned notice dtd. 28/2/2018 issued under Sec. 179 of the Income Tax Act, 1961 and also order dtd. 29/3/2018 at Annexure-A to the petition.

(2.) The background of facts which has given rise the present petition is that the petitioner is an individual and was appointed as a director of Company 'Annapurna Polymers Pvt. Ltd.,' from May, 1989 since inception. Later on petitioner had sold off his shares on 26/12/2013 and also resigned from the post of director on 2/1/2014. It is the case of the petitioner that this Company named as 'Annapuran Polymers Pvt. Ltd.,' later on went into liquidation and one Shri P.P. Rawat was appointed as Official Liquidator vide Resolution dtd. 25/3/2014. 2.1. It is further the case of the petitioner that on 28/2/2018 i.e. almost after an unreasonable period, a show cause notice in purported exercise of power under Sec. 179 of the Income Tax Act came to be issued to the petitioner calling upon the petitioner to show cause as to why order under Sec. 179 of the Income Tax Act not be made against the petitioner for pending tax dues of 'Annapurna Polymers Pvt. Ltd.,' for the Assessment Year 2011-12 amounting to Rs.1,16,58,350.00. The said notice came to be replied on 12/3/2018 inter alia explaining that the tax dues relate to a disputed issue which is under litigation and the notice does not state any efforts undertaken to recover money from the Company itself and further non-recovery of said dues are not attributable to any gross neglect, misfeasance or breach of duty by the petitioner in the affairs of the Company and as such, impugned notice is vague, reflecting no such condition precedent and by not stating any facts, representation is given and by making out such plea, the petition is brought before this Court under Article 226 of the Constitution of India.

(3.) The co-ordinate Bench of this Court was pleased to issue notice for final disposal vide order dtd. 23/7/2019 and in the meantime, granted ad-interim relief in terms of paragraph 7(b) and later on upon completion of pleadings, the petition came up for consideration before us.