Directors’ Liability for Tax Arrears: Section 179(1) not extends to public companies

R.Rajagopalan Managing Director Vs DCIT (Madras High Court) In the case of R. Rajagopalan Managing Director vs DCIT (Madras High Court), the key issue was whether the provisions of Section 179(1) of the Income Tax Act, which holds directors of a private company liable for unpaid tax dues, apply to directors of a public limited company. The petitioner, a director of Wellwin Industries Limited, challenged the proceedings where the Income Tax Department sought to recover tax arrears from him under Section 179. The petitioner argued that the provision only applies to private companies and that th...