B.muralidhar v. The Principal Commissioner Of Income Tax-1, Room

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HONOURABLE MR.JUSTICE C.SARAVANAN W.P.No.19857 of 2021and WMP.No.21117 of 2021 (Through Video Conferencing) B.Muralidhar vs. ...Petitioner 1. The Principal Commissioner of Income Tax-1, Room No.701, 7[th] Floor, New Block, 121, M.G.Road, Chennai 600 034. Room No.701, 7[th] Floor, New Block, 121, M.G.Road, Chennai 600 034. 2. The Deputy Commissioner of Income Tax, Corporate Circle-I, Room No.611, Wanaparthy Block, 6[th] Floor, 121, M.G.Road, Chennai 600 034. Corporate Circle-I, Room No.611, Wanaparthy Block, 6[th] Floor, 121, M.G.Road, Chennai 600 034. 3. The Tax Recovery Officer, PCIT-1, Chennai 600 034. ...Respondents Prayer: Petition filed under Article 226 of the Constitution ofIndia to issue a Writ of Certiorari, to call for the records ofthe petitioner on the file of the 1[st] respondent in PAN: and quash the impugned order passed by the 1[st]respondent under Section 264 of the Income Tax Act, 1961 dated27.02.2020,inC.No.217/U/S.264/PCIT-1/2019-20fortheAssessment Years 1999-00 to 2006-07. For Petitioner : Mr.Venkatanarayanan for M/s.Subbaraya Aiyar Padmanabhan and Ramani For Respondents : Mrs.Hema Muralikrishnan Senior Standing Counsel. ORDER The petitioner was a Director of “Kay & Emm Projects andTechnologies Private Limited” which was later changed to “K andM projects and Technologies Private Limited” and further becamea Public Limited company and changed its name to “A and Gprojects and Technologies Limited”. 2. The petitioner was issued with a Show Cause Notice underSection 179 of the Income Tax Act, 1961 to show cause as to whythe petitioner should not be held liable to pay for the arrearsof tax due in respect of the Company in which the petitioner wasearlier a Director. It was specific case of the petitioner thathe had resigned from the post of Director and worked as aconsultant during the period in dispute. 3. An order came to be passed on 24.01.2019 by the secondrespondent holding that the petitioner was jointly and severallyliable to pay tax due of the said company “A & G Projects andTechnologies Limited” previously known as “Kay & Emm Projectsand Technologies Private Limited.” 4. The petitioner thus challenged the said order inW.P.No.23222 of 2019. Earlier W.P.No.23222 of 2019 was disposedby an order dated 08.08.2019 by giving liberty to the petitionerto work out the remedy under Section 264 of the Income Tax Act,1961 which has now culminated in the impugned order dated27.02.2020. 5. Heard the learned counsel for the petitioner and thelearned Senior Standing Counsel for the respondents. 6. Since several disputed question of facts are involved asto whether Section 179 of the Income Tax was applicable or notand since before passing the impugned order dated 27.02.2020,the 1[st] respondent has not discussed those aspects, the case isliable to be remitted back to the 1st respondent to pass aspeaking order afresh. 7. Therefore, the impugned order passed by the 1[st]respondent dated 27.02.2020 is hereby quashed and the case isremitted back to the 1[st] respondent to pass a speaking order onmerits and in accordance with law by considering the submissionof the petitioner as to non applicability of Section 179 of theIncome Tax Act, 1961, within a period of forty five days fromthe date of receipt of a copy of this order. 8. Needless to state, before passing such order, thepetitioner shall be heard in person and/or through an authorised https://hcservices.ecourts.gov.in/hcservices/ representative through Video Conference, in case the petitionerdesires for a personal hearing, before such an order is passedby the 1[st] respondent. 9. This writ petition stands allowed with the aboveobservations. No costs. Consequently, connected miscellaneouspetition is closed. Sd/- Assistant Registrar(CS VII) //True Copy// Sub Assistant Registrar kkd 8. Needless to state, before passing such order, thepetitioner shall be heard in person and/or through an authorised https://hcservices.ecourts.gov.in/hcservices/ representative through Video Conference, in case the petitionerdesires for a personal hearing, before such an order is passedby the 1[st] respondent. 9. This writ petition stands allowed with the aboveobservations. No costs. Consequently, connected miscellaneouspetition is closed. Sd/- Assistant Registrar(CS VII) //True Copy// Sub Assistant Registrar kkd To1. The Principal Commissioner of Income Tax-1, Room No.701, 7[th] Floor, New Block, 121, M.G.Road, Chennai 600 034. 2. The Deputy Commissioner of Income Tax, Corporate Circle-I, Room No.611, Wanaparthy Block, 6[th] Floor, 121, M.G.Road, Chennai 600 034. 3. The Tax Recovery Officer, PCIT-1, Chennai 600 034. +1cc to M/s.Subbaraya Aiyar, Advocate, S.R.No.62511+1cc to Mrs.Hema Muralikrishnan, Senior Standing Counsel,S.R.No.62093 PL[co]NSK 23/12/2021