Where the directors of a private limited company have not paid 20% of the demand for a stay of demand on the company, it cannot be said that there is any negligence on the part of the directors since they have filed an appeal before CIT(A) and taken all steps to ensure no liability is cast upon the company. Recovery notice was quashed. (AY 2014-2015)
Devendra Babulal Jain v. ITO (2023) 456 ITR 141/291 Taxman 333 (Guj)(HC)
S. 179 : Private company-Liability of directors-No liability if the director takes steps by filing an appeal before CIT (A)-Order was quashed and set aside. [S. 156, 222,226(3), Art. 226]