Case Law Details
Manjula D. Rita Vs PCIT (Bombay High Court)
Introduction: In a significant legal decision, the Bombay High Court has ruled on the case of Manjula D. Rita vs. PCIT, addressing the issue of tax recovery from a deceased director of a company. The court’s verdict emphasized the importance of due process and evidence in such cases.
Detailed Analysis: The case revolves around late Dinesh Shamji Rita, a director of Bhavya Infrastructure India Private Limited during the Assessment Year 2012-2013. Following an assessment order that made several additions to the company’s income and tax demand, a stay application filed by the company was rejected. Subsequently, an order under section 179 of the Income Tax Act was issued, demanding tax from the deceased director.
The deceased director’s legal heirs filed a revision petition against this order, which was rejected, leading to a writ petition before the Bombay High Court.
The Bombay High Court’s ruling emphasized several crucial points:
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