Company liability extends to directors and officers where consent, connivance, or negligence is shown; due diligence defence available.

Offences by companies and similar taxable persons are attributed to the company and to persons in charge-directors, managers, secretaries, partners, karta or managing trustees-who are deemed guilty where the offence occurred with their consent, connivance or negligence; the same rules apply mutatis mutandis to partnership firms, LLPs, HUFs and trusts. A defence exists where the person proves lack of knowledge or that all due diligence was exercised to prevent the offence. Definitions treat company to include firms or associations and partner as director in relation to a firm.

---

---

---