Outstanding Income Tax Dues Cannot Be Recovered from Directors of Public Company u/s 179: Rajasthan HC

The Rajasthan High Court ruled that outstanding income tax dues cannot be recovered from the directors of a public company under section 179 of the Income Tax Act. In this case, the tax authorities sought to recover dues from the company’s directors, arguing that they were liable for the company’s unpaid taxes. However, the court held that directors of a public company cannot be held personally responsible for the company’s tax obligations, except in specific circumstances. This ruling provides important protection to directors and reinforces the principle that corporate entities and their directors have separate legal identities under tax law.