Allowing the petition the Court held that show cause notices disclosed no facts regarding steps taken by revenue to recover tax dues from delinquent company and this being a sine qua non for proceeding further, and for assuming jurisdiction under section 179 of the Act. Failure to disclose this material and to record satisfaction of Assessing Officer in manner required by provisions of section 179 rendered impugned show cause notices order unsustainable in law. SLP of Revenue is dismissed. (AY. 2007-08)
ITO v. Jagesh Savjani (2023) 459 ITR 210/ 294 Taxman 601 (SC) Editorial : Jagesh Savjani v.UOI (2023) 459 ITR 194/ 154 taxmann.com 42 (Bom)(HC)
S. 179 : Private company-Liability of directors-Notices lacked disclosure of steps taken for tax recovery from company-Order of High Court quashing the Notice-SLP of Revenue is dismissed. [Companies Act, 2013, S.167, Art. 136]