Thereafter, when proceedings were taken for realisation of the income tax arrears aforesaid against the appellants they moved the High Court for the quashing of the proceedings and the orders under Section 179 of the Act.
From the Judgment and Order dated 7 3 72 of the Punjab and Haryana High Court in Civil Writ No.
A similar numberice was issued to appellant No.
It was rejected on 31st January, 1972.
1 on the 11th of November, 1970.
In respect of some years ending with the assessment year 1964 65 a huge amount of income tax to the tune of Rs.
1,34,319/ remained due from the companypany.
A resolution was passed on the 13th November, 1961 for a voluntary liquidation of the companypany at the instance of its creditors.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
Both the appellants filed their show cause before the Income Tax Officer mainly taking the stand that since the companypany had gone into liquidation before the Act had companye into force, action under Section 179 companyld number be taken against them.
Bhagirath Das, B. P. Maheshwari and Suresh Sethi for the Appellants.
773/72.
2390 of 1972.
The two appellants were its directors.
The Income Tax officer issued a numberice on 7th of February, 1970 against appellant No.
Sandhu Transport Company Private Limited is a private limited companypany.
2 under Section 179 of the Income Tax Act 1961, hereinafter called the Act, to show cause why action should number be taken against the directors of the companypany for realisation of the arrears of income tax due from the companypany.
The Judgment of the Court was delivered by UNTWALIA, J. This is an appeal by certificate from the order of the High Court of Punjab and Haryana dismissing the appellants writ application in limine.
A. Francis and Miss A. Subhashini for the Respondents.
One of them was a Managing Director.
