On writ the court held that the notice was totally silent as regards the satisfaction of the condition precedent for taking action under section 179 , viz., that the tax dues could not be recovered from the company. The notice was not valid.

[However in the peculiar facts and circumstances of the case and more particularly, when it had been indicated before the court by way of any additional affidavit-in-reply as regards the steps taken against the company for the recovery of dues, a chance was to be given to the Department to undertake a fresh exercise under S.  179 .]( AY. 2011-12 to 2014-15)