Liability of directors in case of company goes into liquidation. - Income Tax - 498 / CBDT

INSTRUCTION NO. 498 / CBDT Dated : January 18, 1973 Section(s) Referred: 179 Statute: Income - Tax Act, 1961 Attention is invited to the Provisions of Section 179 of the Income-tax Act according to which where a private limited company has gone into liquidation and the arrears of tax cannot be recovered, every Director shall be held jointly and severally liable for payment of such tax. As large sums of arrears are outstanding against certain private limited companies which have gone into liquidation and recovery in such cases often becomes difficult, the Board desire that the provisions of Section 179 should be used more vigorously and frequently.