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TMI Blog2021 (7) TMI 1248X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard, this Court has considered the scope of Section 179 of the Income Tax Act and its application [ 2021 (3) TMI 1232 - MADRAS HIGH COURT] In view of the above facts and circumstances, the Show Cause Notice impugned passed by the 1st respondent in proceedings dated 28.02.2018 bearing reference no.AACCS9190G/Block Asst.92-93 is quashed and the matter is remanded back to the first respondent for fresh consideration. - W.P.No.10351 of 2018 and W.M.P.No.12315 of 2018 - - - Dated:- 12-7-2021 - THE HONOURABLE MR.JUSTICE S.M.SUBRAMANIAM For the Petitioner : Mr.Haja Nazirrudeen Senior counsel For Mr.P.N.Rajan For the Respondent R1 : Mr.A.P.SrinivasSenior Standing counsel [For Income Tax] R2 : Mr.Sridhar Bavisetty Deputy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nces available. The petitioners are bound to establish the factual pleadings before the authority competent, who in turn, may be permitted to review the opinion already confirmed with reference to the Show cause notice issued. 6. In view of the said submission, this Court is of the considered opinion that the matter is to be remanded back for the purpose of fresh adjudication. In this regard, this Court has considered the scope of Section 179 of the Income Tax Act and its application in W.P.Nos.22923 22924 of 2018 dated 04.03.2021 and the relevant paragraphs are extracted hereunder: 8.He submits that there are several disputed question of fact as to whether the said Gangothari Textiles Limited in respect of which the tax due was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibed in that statutory provision is fulfilled. 9.I have considered the arguments advanced by the learned counsel for the petitioner and the respondent. 10.The impugned orders have been passed under Section 179 of the Income Tax Act, 1961 which specifically applies to liability of directors of private companies. The definitions of private limited company and public limited company Section 3(i)(iii) and (iv) of the Companies Act, 1956 is clear. 11.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 comp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a private limited company, appropriate notice may be issued to the petitioners. 13.Writ Petitions stand disposed of with the above observations. No costs. Consequently, connected Miscellaneous Petitions are closed. 7. In view of the above facts and circumstances, the Show Cause Notice impugned passed by the 1st respondent in proceedings dated 28.02.2018 bearing reference no.AACCS9190G/Block Asst.92-93 is quashed and the matter is remanded back to the first respondent for fresh consideration. The petitioners are at liberty to submit their documents and evidences to establish, whether they were holding the Post of Directors in a Public Limited Company or a Private Limited company within a period of four weeks from the date of rece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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