India - Income Tax Act 2010 - Saarc

1.731 CH. XV - LIABILITY IN SPECIAL CASES - PRIVATE COMPANIES S. 179Provided that nothing contained in this sub-section shall debar the liquidatorfrom parting with such assets or properties for the purpose of the payment of thetax payable by the company or for making any payment to secured creditorswhose debts are entitled under law to priority of payment over debts due toGovernment on the date of liquidation or for meeting such costs and expensesof the winding up of the company as are in the opinion of the 10 [Chief Commissioneror Commissioner] reasonable.(4) If the liquidator fails to give the notice in accordance with sub-section (1) orfails to set aside the amount as required by sub-section (3) or parts with any ofthe assets of the company or the properties in his hands in contravention of theprovisions of that sub-section, he shall be personally liable for the payment of thetax which the company would be liable to pay :Provided that if the amount of any tax payable by the company is notified undersub-section (2), the personal liability of the liquidator under this sub-section shallbe to the extent of such amount.](5) Where there are more liquidators than one, the obligations and liabilitiesattached to the liquidator under this section shall attach to all the liquidatorsjointly and severally.(6) The provisions of this section shall have effect notwithstanding anything tothe contrary contained in any other law for the time being in force.11[M.—Private companies]Liability of directors of private company in liquidation.179. 12 [(1)] Notwithstanding anything contained in the Companies Act, 1956(1 of 1956), 13 [where any tax due from a private company in respect of anyincome of any previous year or from any other company in respect of any incomeof any previous year during which such other company was a private company]cannot be recovered, then, every person who was a director of the privatecompany at any time during the relevant previous year shall be jointly andseverally liable for the payment of such tax unless he proves that the nonrecoverycannot be attributed to any gross neglect, misfeasance or breach ofduty on his part in relation to the affairs of the company.14[(2) Where a private company is converted into a public company and the taxassessed in respect of any income of any previous year during which suchcompany was a private company cannot be recovered, then, nothing containedin sub-section (1) shall apply to any person who was a director of such privatecompany in relation to any tax due in respect of any income of such privatecompany assessable for any assessment year commencing before the 1st day ofApril, 1962.]10. Substituted for “Commissioner” by the Direct Tax Laws (Amendment) Act, 1987, w.e.f.1-4-1988.11. Substituted for “M.—Private company in liquidation” by the Taxation Laws (Amendment)Act, 1975, w.e.f. 1-10-1975.12. Inserted, ibid.13. Substituted for “when any private company is wound up after the commencement of thisAct, and any tax assessed on the company, whether before or in the course of or after itsliquidation, in respect of any income of any previous year”, ibid.14. Inserted, ibid.