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TMI Blog2018 (1) TMI 749X X X X Extracts X X X X X X X X Extracts X X X X ..... ition precedent to exercise jurisdiction under Section 179 (1) of the Act is not satisfied. At no time has the Petitioner been given a chance to meet the Revenue's case that it has taken steps to recover the amount from the defaulting Private Limited Company so as to meet the jurisdictional condition precedent before passing an order under Section 179 (1) - AO is at liberty to pass a fresh order after issuing the appropriate notice to the Petitioner indicating briefly, the steps taken by the department to recover the tax dues from the defaulting Private Limited Company and its failure to recover the same - Writ Petition No. 567 of 2016 - - - Dated:- 5-1-2018 - M. S. Sanklecha And Mr. Riyaz I. Chagla, JJ. Mr. Mandar Vaidya, for the P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to recover the tax dues from the defaulting assessee i.e. to Private Limited Company. This submission it is pointed out has not been dealt with. 5. As against the above, Mr. Pinto the learned counsel for the Respondent has pointed out that the impugned order dated 31st December 2015 in paragraph 2 thereof states that the recovery proceedings have been conducted by the department against assessee company but no recovery could be made. Therefore, it is submitted that jurisdiction under Section 179 of the Act has been exercised only after the department was unable to recover its tax dues from the delinquent Private Limited Company. 6. This Court in the Dinesh Tailor (Supra) has while analysing Section 179 (1) of the Act has observed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore appropriately, the notice to show cause issued under Section 179 (1) of the Act to the directors of the delinquent Private Limited Company must indicate albeit, briefly, the steps taken to recover the tax dues and its failure. In cases where the notice does not indicate the same and the Petitioner raises the objection of jurisdiction on the above account, then the Petitioner must be informed of the basis of the Assessing Officer exercising jurisdiction and the notice' / directors response, if any, should be considered in the order passed under Section 179 (1) of the Act. In this case the show cause notice dated 16th December 2015 under Section 179 (1) of the Act does not indicate or give any particulars in respect of the steps ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate notice to the Petitioner indicating briefly, the steps taken by the department to recover the tax dues from the defaulting Private Limited Company and its failure to recover the same. Needless to state the Assessing Officer would hear the Petitioner on its objections and pass a fresh order. However, it is made clear that the attachment order dated 11th January 2016 is not disturbed and would continue till the passing of a final order by the Assessing Officer under Section 179 (1) of the Act. 11. Mr. Vaidya, the learned counsel for the Petitioner on instructions states that the Petitioner will fully cooperate with the Assessing Officer. In view of the fact that the Petition relates to the tax recoveries from Assessment Year 2006- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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