Section 278B: Companies and Individuals Liable for Tax Offences, Possible Fines and Imprisonment for Responsible Parties.
Section 278B of the Income Tax Act addresses offences committed by companies, holding both the company and individuals in charge accountable. If an offence occurs, the responsible person and the company are deemed guilty unless the person proves lack of knowledge or due diligence. Directors, managers, or officers are also liable if the offence occurs with their consent, connivance, or neglect. Companies face fines, while individuals involved may face imprisonment and fines. The term "company" includes firms and associations, and "director" encompasses partners and controlling members.