Offences by companies: personal and attributed liability extends to those in charge and officers where consent, connivance or negligence is shown. Section 137 deems persons in charge of a company or equivalent taxable entity guilty for offences committed by that entity, and attributes liability to directors, managers, secretaries or other officers where offence involved their consent, connivance or negligence. The same rules apply to partners, the karta or managing trustee of firms, LLPs, HUFs and trusts. A defence exists if the person proves lack of knowledge or that all due diligence was exercised to prevent the offence. 'Company' includes firms and associations of individuals; a partner is treated as a director for these purposes.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Offences by companies: personal and attributed liability extends to those in charge and officers where consent, connivance or negligence is shown.
Section 137 deems persons in charge of a company or equivalent taxable entity guilty for offences committed by that entity, and attributes liability to directors, managers, secretaries or other officers where offence involved their consent, connivance or negligence. The same rules apply to partners, the karta or managing trustee of firms, LLPs, HUFs and trusts. A defence exists if the person proves lack of knowledge or that all due diligence was exercised to prevent the offence. "Company" includes firms and associations of individuals; a partner is treated as a director for these purposes.
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