Consultancy fees claimed as business expense-can tax disallowance rest on survey suspicion despite invoices, contracts and bank trail? Appeal dismisse...
Liability of directors for offences under the Negotiable Instruments Act turns on demonstrable participation in company affairs; documentary indicia such as Form 32, cheque signatory status, and co-signature on balance sheets can support summoning. One director was correctly summoned because records show active involvement; her non-involvement is a defence to be contested at trial. By contrast, resignation properly recorded in Form 32 and board minutes, supported by independent evidence establishing resignation before the cause of action, removes a director from company involvement and warranted quashing of the summoning and discharge in his favour.
Liability of directors for offences under the Negotiable Instruments Act turns on demonstrable participation in company affairs; documentary indicia such as Form 32, cheque signatory status, and co-signature on balance sheets can support summoning. One director was correctly summoned because records show active involvement; her non-involvement is a defence to be contested at trial. By contrast, resignation properly recorded in Form 32 and board minutes, supported by independent evidence establishing resignation before the cause of action, removes a director from company involvement and warranted quashing of the summoning and discharge in his favour.
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