M GOMATHI SHANKAR Vs. INCOME TAX OFFICER COMPANY WARD IV 1 121 M G ROAD AAYAHAR BHAWAN MAIN BUILDING IV FLOOR CHENNAI 600 034

JUDGEMENT

(1.) HEARD Mr.P.Rajkumar, learned counsel appearing for the petitioners and Mr.J.Narayanasamy, the learned Standing Counsel appearing on behalf of the respondents.

(2.) IT is submitted by the petitioners that they were Directors in M/s Meld Chemicals (P) Ltd. which was involved in the manufacturing and trading of Chemicals. The petitioners have resigned from the Board of Directors of the said Company, with effect from 28.02.2003. In compliance with the provisions of the Companies Act, Form 32 had been submitted before the Registrar of Companies, about the change in the Management of the Company. However, the first respondent had issued a show cause notice on 19.07.2007, under Section 179 of the Income Tax Act to the petitioners, with regard to the assessment years 2002-03 and 2003-04. In spite of the petitioners intimating the first respondent that they had already resigned from the Company, the impugned order dated 08.08.2007, had been passed by the first respondent in PAN:AACCM49676C, under Section 179 of the Income Tax Act, 1961, holding the petitioners liable to pay the arrears of tax due from M/s Meld Chemicals (P) Ltd., as stated therein.

(3.) BASED on the submissions made by the learned counsel for the petitioners and the learned Standing Counsel for the respondents and in view of the order passed by the Division Bench of this Court as noted above, this Court is of the considered view that the show cause notice, dated 19.07.2007, and the impugned order passed by the first respondent, on 08.08.2007, in PAN:AACCM49676C, are set aside, and the first respondent is directed to cause an enquiry with regard to the liability of the petitioners, and to pass appropriate orders, on merits and in accordance with law, expeditiously. With the above directions, these writ petitions are disposed of. No costs. Consequently, connected miscellaneous petitions are closed.