Permanent Establishment and Business Connection: foreign consultancy receipts not attributable where no fixed base or corporate veil piercing establis...
Limitation period commencement and procedural inquiry rules: identity-based limitation upheld; complaints by authorised public servants need not attra...
Vicarious liability under FEMA was sustained against the company and its managing director because the Managing Director's position supported attribution of the contravention, while the other two directors were treated as sleeping directors not involved in day-to-day affairs or signing the import documents, so they were not liable under Section 3(b) read with Section 42. On penalty, the Tribunal held that Section 13(1) prescribes only the maximum limit and leaves quantum to judicial discretion; considering mitigating circumstances and the pre-deposit already made through FDRs, it reduced the penalty on the company and its managing director to that extent, with accrued interest.
Vicarious liability under FEMA was sustained against the company and its managing director because the Managing Director's position supported attribution of the contravention, while the other two directors were treated as sleeping directors not involved in day-to-day affairs or signing the import documents, so they were not liable under Section 3(b) read with Section 42. On penalty, the Tribunal held that Section 13(1) prescribes only the maximum limit and leaves quantum to judicial discretion; considering mitigating circumstances and the pre-deposit already made through FDRs, it reduced the penalty on the company and its managing director to that extent, with accrued interest.
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