Anandhi P Naig & Ors. Vs Union of India & Anr. (Gujarat High Court)
The Gujarat High Court considered a writ petition seeking quashing of a Show Cause Notice dated 14.12.2018, an order dated 31.12.2018 passed under Section 179 of the Income Tax Act, 1961, and the consequential demand notice issued under Section 156 of the Act.
The Court noted that, while issuing notice and granting ad-interim relief on 31.01.2019, the Coordinate Bench had recorded the petitioners’ contentions that they were given less than two days to respond to the Show Cause Notice and that Section 179 could not be invoked because the company concerned was a public limited company and not a private limited company.
The petitioners asserted that petitioner Nos. 1 and 2 received the Show Cause Notice only on 22.12.2018, although the notice required them to file a reply by 24.12.2018 at 10:30 p.m. They further stated that petitioner Nos. 3 to 5 had not received any notice for Assessment Years 2008-09 and 2011-12. These assertions remained uncontroverted in the respondent’s affidavit. The petitioners ultimately filed their reply on 31.12.2018, contending that Section 179(1) was inapplicable because the company was a public limited company. They also relied on various High Court and Supreme Court judgments in support of their stand.
