1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Directors of private limited companies at risk

ByCA Gopal Nathani

Feb 7, 2022

Budget-wise section 179 @ income-tax is amended to make directors of private companies accountable for payment of taxes in the ordinary course of running of business of the company.

Contentions such as that the company had no income and suffered losses do not come to any help under the law vide Union of India v. Manik Dattatreya Lotlikar [1988] 172 ITR 1 (Bom) and therefore in the absence of any stay the demand can be recovered from directors.

It is thus important that each and every demand against the company is addressed and reviewed by the private company board on regular basis and proper action is taken for resolution in accordance with the remedies available under the law. Both ED and non ED are accountable.