DARSHAN KUMAR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS petition has been filed to quash annexures "P-1", "P-2" and "P-7" issued respectively by the Tax Recovery Officer-I, Jalandhar, General Manager, Punjab Roadways, Amritsar-I, and the Assistant Commissioner of Income-tax, Circle 1(1), Jalandhar.

(2.) THE brief facts :

(3.) THE second argument of Shri Mittal is that the petitioner cannot be held liable to pay arrears after his resignation from the directorship of the company. This argument proceeds on an assumption that the resignation from the directorship of the company ipso facto absolves the petitioner of all the liabilities which he incurred during the period he was a director of the company. A bare reading of Section 179 of the Act shows that every person who was a director of the private company at any time during the relevant previous year of the assessment shall be jointly and severally liable for the payment of tax found due against the company for the relevant previous year. THE tax found due in this case relates to the assessment year 1991-92 when the petitioner was very much a director of the company. THErefore, he cannot escape his liability to pay the arrears after the competent authority found that it was impossible to recover the amount from Maini Finance (P.) Ltd.