Directors liability of pvt co.

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Ritesh Maheshwari (Querist)
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20 October 2012 According to Sec 179 if a pvt co is unable to pay its dues of IT, then its directors shall be liable to pay all the dues, then whether demand notice u/s 156 is required to be issued to director??
Also if he is not paid this dues within prescribed time limit then whether he will be treated as "Assesee in default" u/s 220??
Please suggest with any Case law.
Thanks

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 October 2012 1) No . Notice u/s 226(3) is enough.

2) Yes. Such a Director is an assessee in default vide section 226 (3)(x).

3) Case law. S. Hardip Singh Sandhu Vs. TRO 166 ITR 749 (P&H).

Ritesh Maheshwari

Ritesh Maheshwari (Querist)
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20 October 2012 Thank you sir.
1 more que is that What will be situation in case of Partnership firm for issuance of demand notice U/s 156, if firm is unable to pay the dues??

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Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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20 October 2012 It is not possible for steps being taken against the partners of a firm for collection of tax imposed on the firm .
C.V George & others case can be referred which is reported in 105 ITR 144 (Ker).

Ritesh Maheshwari

Ritesh Maheshwari (Querist)
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20 October 2012 Thank you very much Sir.