To,

Assistant Commissioner of Income Tax,

………………………………………………

………………………………………………

………………………………………………

Subject: Response to Order under Section 179 of the Income-tax Act, 1961

Dear Sir/Madam,

I am writing in response to the order dated ………… received from your office regarding the outstanding demand of Rs. ………….. in the case of ………………………….. (PAN:………………………). I acknowledge the receipt of the order and appreciate the detailed breakdown of the demand.

I would like to address the points mentioned in the order as follows:

1. Breakdown of Demand:

Assessment Year   Demand       Nature of Demand (Tax/Interest/Penalty)

2020-21                  Rs ………………     Penalty

2021-22                   Rs ………………     Tax

2022-23                   Rs ………………     Interest

2023-24                   Rs ………………     Tax

Total  –           Rs ………………

2. Payment Status:

I understand that the total demand of Rs. ……………….. is outstanding as of the mentioned date.

I acknowledge that despite multiple opportunities, the payment has not been made by the company.

3. Directorship:

I acknowledge that at the relevant point in time, the directors of the assessee-company were Smt. ………………………………. and Smt. ……………………………..I understand that there are no recoverable assets in the name of the assessee-company.

4. Proceedings under Section 179:

I acknowledge that proceedings under section 179 of the Income Tax Act, 1961 were initiated on …………………. by way of issuing notice to the then Directors. I understand the importance of complying with this section.

5. Compliance with Section 179:

I apologize for the non-compliance with the notice issued under section 179. I assure you that I am committed to rectifying this situation and fulfilling my obligations under the law.

6. Provisions of Section 179:

I appreciate the clear explanation of the provisions of section 179 provided in the order.

7. Board’s Directive:

I take note of the directive from the Board regarding the use of section 179 in such instances.

8. Joint and Several Liability:

I understand that, in accordance with section 179, I am held jointly and severally liable for the outstanding demand of Rs. [Amount] as well as any future demand that may arise in the case of Assessee-company.

I assure you of my commitment to resolving this matter in compliance with the law. I am prepared to take the necessary steps to fulfill my responsibilities in this regard.

Thank you for your understanding and cooperation. Please let me know if there are any further instructions or documents required.

Yours sincerely,

…………………………………

………………………………………..

Dated ………………………

Enclosures:

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