The petitioner is managing director of Crest Paper Mills Limited (“CPML”)  Order was  passed under section 179 holding Assessee liable to pay a demand along with interest under section 220(2) which was otherwise due and payable by company, CPML. On writ allowing the petition the Court held that notice under section 179 issued by Revenue did not at all inform Assessee of its intention to treat company, i.e., CPML as a public company by invoking principle of ‘lifting corporate veil’ much less did it refer to any material or conclusion based upon which it could assume jurisdiction under section 179 against directors of a Private Company. Procedure adopted by Revenue was clearly violative of principles of natural justice and without affording to Assessee, an opportunity of being heard on question, as to why principle of ‘lifting corporate veil’ be not applied in case of CMPL to justify recovery of tax dues from directors. Court also held that orders  are also unsustainable on another ground that power under section 179 can be exercised against Directors upon satisfaction of certain conditions only if tax dues cannot be recovered from private company to justify that tax dues cannot be recovered, Assessing Officer has to enumerate steps taken towards recovery of tax dues from company. On facts  there was no satisfaction recorded that tax cannot be recovered.  Petition was allowed.  (AY. 2010-11)