Penalty for estimation of income and disallowances for tax non-deduction clarified: estimation-based penalties not sustainable; additions without conc...
Managerial remuneration disallowance under s.40A(2)(b) challenged over alleged tax-avoidance; appellate decision restored deletion of addition for dir...
Liability under Section 141 of the Negotiable Instruments Act cannot be fastened merely because a person is designated as a director; the complaint must contain specific averments showing how and in what manner the accused was in charge of and responsible for the company's business at the relevant time. General allegations that directors handled day-to-day affairs were insufficient where the accused was a non-executive independent director, was not a signatory to the dishonoured cheques, and no direct nexus with the transactions was pleaded. The summoning orders and criminal proceedings were quashed qua the petitioner.
Liability under Section 141 of the Negotiable Instruments Act cannot be fastened merely because a person is designated as a director; the complaint must contain specific averments showing how and in what manner the accused was in charge of and responsible for the company's business at the relevant time. General allegations that directors handled day-to-day affairs were insufficient where the accused was a non-executive independent director, was not a signatory to the dishonoured cheques, and no direct nexus with the transactions was pleaded. The summoning orders and criminal proceedings were quashed qua the petitioner.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4819 
Join Channel 
