9911796707
TMI Blog2021 (3) TMI 1232X X X X Extracts X X X X X X X X Extracts X X X X ..... and public limited company Section 3(i)(iii) and (iv) of the Companies Act, 1956 is clear. The definition of company has defined in Companies Act, 1956 has been incorporated in the Income Tax Act, 1961. The Companies Act, 1956 recognizes private limited company and public limited company. There are no evidence on records to conclude that the said assessee in default companies namely M/s.Gangotri Textiles Ltd and NEPC Agro Foods Ltd was a private limited company. There are no records to substantiate the said companies was a private limited company. Therefore, challenge to invocation of Section 179 of the Income Tax Act also appears to correct. Considering the fact that the records are not in produced either by the petitioner nor the responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income Tax, Corporate Circle 1 and 2, Coimbatore under Section 179 of the Income Tax Act, 1961. Details of the impugned order are as under:- W.P.Nos. Date Impugned Order passed by Defaulting company 22923 of 2018 25.06.2018 The Asst. Commissioner of Income Tax, Corporate Circle - 2, Coimbatore. M/s.Gangotri Textiles Ltd. 11880-81 of 2018 23.02.2018 The Asst. Commissioner of Income Tax, Corporate Circle-1, Coimbatore. NEPC Agro Food Ltd. 3. These orders are challenged by the petitioner primarily on the ground that invocation of Section 179 of the Income Tax Act, 1961 was without jurisdiction in as much as the assessee in default in the respective cases of which the petitioner by directors/shareholders were not p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Further proceedings against the present appellants for recovery of the tax due from the company should not be taken. We, however, should not be understood as having in any way restricted the powers of the department to recover the amounts due from the company by other processes in accordance with law. We also make it clear that any amounts which might have been paid either by the appellants or by the company in the course of the proceedings now under challenge will not be liable to be refunded to the appellants. 5. The learned counsel for the petitioner further submits that the decisions of the Hon'ble Gujarat High Court in Pravinbhai M.Kheni Vs. The Assistant Commissioner of Income Tax & Others [2013] ITR Guj 353 585 is not applicabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g reliance on the Doctrine of Piercing the Corporate Veil recognized by the Hon'ble Supreme Court of India in Commissioner of Income Tax, Madras -vs- Sri Meenakshmi Mills Ltd., (AIR 1967 SC 819) for tax evasion or to circumvent tax obligation which has been quoted with approval by the Constitution Bench of the Hon'ble Supreme Court of India in Life Insurance Corporation of India -vs- Escorts Ltd., [(1986) 1 SCC 264] and followed by the Division Benches of the High Court of Gujarat Pravinbhai M.Kheni -vs- Assistant Commissioner of Income-Tax, Central Circle - 2 (Judgment dated 06.11.2012 in Special Civil Application No.12254 of 2002) and Ajay Surendra Patel -vs- Deputy Commissioner of IncomeTax (Judgment dated 23.02.2017 in Special C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriate orders, after considering the definition of the 'Company' in Section 262(68) and (71) of the Companies Act, 2013 and ..deals of the Companies Act, 1956. The respondent may how issue a proper notice after examining the certificate of incorporation of the respective assessee in default and after examined the articles and Memorandum and Article of association of M/s.Gangotri Textiles Ltd and NEPC Agro Foods Ltd. If there are materials to suggest that the ...company were a private limited company the respondent may pass appropriate order under Section 179 of the Income Tax Act. This exercise shall be carried out by the respondent within a period of three months from the date of receipt of a copy of this order. In case the re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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