Section 278C: Karta and HUF Members Liable for Income Tax Offences Unless Proven Innocent
Section 278C of the Income Tax Act addresses offences committed by Hindu undivided families (HUF). If an offence is committed by an HUF, the karta, or head of the family, is deemed guilty and subject to punishment unless they can prove lack of knowledge or due diligence to prevent the offence. Additionally, any member of the HUF who consents to, connives in, or neglects to prevent the offence is also considered guilty and liable for punishment. This section ensures accountability within the family structure for income tax offences.