9911796707
TMI Blog2010 (10) TMI 1192X X X X Extracts X X X X X X X X Extracts X X X X ..... e sought by the petitioners in the writ petitions and hence these writ appeals. 3. The three appellants common to each of these appeals were the directors of a private limited company known as 'Kurians Ink and Chemicals (P) Limited'. The said company was a registered dealer within the meaning of the said expression as defined under the Kerala General Sales Tax Act, 1963. The further details of the business of the company may not be necessary for the purpose of this order except to state that for the assessment years 1990-91, 1991-92 and 1992-93, the company came to be assessed under the provisions of the abovementioned Act and was found liable to pay the following amounts towards tax for the abovementioned three assessment years. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he directors is limited and the tax liability of the company cannot be passed on to the shareholders or the directors as it is well established that a company duly incorporated under the provisions of the Companies Act has a distinct legal entity which is capable of acquiring rights and incurring obligations on its own. 8. However, a learned Judge of this Court by the judgment under appeal rejected the challenge on the ground that the petitioners/appellants herein are the exclusive beneficiaries of the business of the company. The learned Judge sought to support such a conclusion on the basis of two decisions of the Supreme Court reported in Commissioner of Income Tax, Madras v. Sri. Meenakshi Mills Ltd. and Ors.: 63 ITR 609 and McDowell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plicable to the facts of the case, on a plain reading of the Section it appears that the liability of the directors of such a company which is declared to be joint and several along with the company arises only in a situation where the Revenue cannot recover the arrears of tax from the company. From the records, it is not clear whether any effort was made by the Revenue to recover the arrears of tax from the company which is primarily responsible for the payment of tax under the Kerala General Sales Tax Act. 12. In the circumstances, we are of the opinion that the impugned demand notices by which the respondents resort to Section 26C of the Kerala General Sales Tax Act for recovering the tax dues of the company from its directors, in our ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
