Law:

Section:

Section 179 of the Income-tax Act, 1961, read with section 114 and Order 47 of the Code of Civil Procedure, 1908 - Private company in liquidation - Liability of directors - Review application of an order passed by Division Bench was made on ground that Court did not take into consideration law in respect of interpretation of amended section 179 of Income-tax Act, 1961 - Whether decision of Division Bench arrived at on basis of admitted facts was binding on parties and had reached finality incapable of being reopened in subsequent proceedings or appeal - Held, yes - Whether such a decision could not be attributed to be a mistake either on fact or in law and such a question could not be a subject-matter of review but could have been a subject-matter of appeal - Held, yes - Whether since decision was not arrived at in ignorance of settled principle of law, it could not be subjected to review - Held, yes FACTS A review application was made of an order passed on 12-6-2000 by the Division Bench in which it was held that amendment in section 179 was not retrospective and could not be attracted. Review was sought on the ground that the Court did not take into consideration the law in respect of the interpretation of section 179, as was amended with effect from 1 10-1975. The Court had relied on the decision passed by the Kerala High Court, which, according to the appellant, was not applicable. It did not consider the decision in Union of India v. Manik Dattatreya Lotlikar [1988] 172 ITR 1/[1987] 35 Taxman 526 (Bom.). Therefore, the was per incuriam, which was a mistake apparent from record. It was stated that the company went into liquidation even before the appellant's husband ceased to be the director of the company. Therefore, on facts, the Court had committed a mistake apparent from record. HELD In a decision by the High Court between the parties in C.O. No. 154 (W) of 1985 disposed of on 17-2-1986 in respect of the self-same question, it was held that the provision of section 179 was not retrospective and could not be attracted. That decision was binding inter sethe parties and the Court could not go behind the same. The order by the Assessing Officer or the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492