However, subsequently, this objection was taken in an application under Section 154 of the Act filed before the Commissioner of Income tax.
The appellants preferred revision petitions before the Commissioner of Income tax without success.
Thereupon, the appellants preferred writ petitions before the High Court.
The suggestion, therefore, was that this letter was a fabricated one.
Before the Commissioner of Income tax as well as before the High Court, the appellants had produced a letter received by the companypany from the Registrar of Companies recognising that the companypany has become a public limited companypany by virtue of Section 43A 1A of the Companies Act, with effect from October 1, 1975.
The learned single judge of the High Court dismissed the writ petitions and the appeals before the Division Bench were also unsuccessful.
But the Commissioner of Income tax rejected this companytention on the ground that it had number been raised earlier and that there was numbermistake apparent on the face of the record which needed rectification.
This letter was dated February 26, 1977.
At these two stages, numberpoint was taken on behalf of the appellants that the companypany was number a private limited companypany and, therefore, the proceedings under Section 179 of the Income tax Act were unjustified.
The appellants are directors of a companypany known as Messrs. Rajmohan Cashews Ltd. For the assessment years 1977 78 to 1982 83, assessments were companypleted on the companypany and a demand of Rs.
Ranganathan, J. Leave granted.
56 lakhs was raised.
This amount was number paid for various reasons and so, on April 30, 1989, the Deputy Commissioner passed an order holding the appellants, who are directors of the companypany liable to pay the tax due from the companypany in view of the provisions of Section 179 of the Income tax Act, 1961.
