TaxTMI 
TaxTMI 
2011 (6) TMI 1
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....es Act, 1956, in pursuance to show-cause notice No. DN/884/ 209A/628/2010 dated November 16, 2010, issued by the respondent. 2. The petitioners are the directors of M/s. Auberge Hotels P. Ltd., engaged in the business of a hotel. Sri Dilip Kapur is the managing director of the company. The other two directors are also his family members. 3. The company filed a balance-sheet duly approved by the board of directors in the annual general meeting, with the Registrar of Companies. The requirement of section 220 was fulfilled as the requisite documents were filed and the balance-sheet was signed by two of the directors. The balance-sheet was required to be accompanied by e-Form No. 23AC as the balance-sheet was filed electronically with the....
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....nbsp; (II) DIN or income- 01944844 Pre-fill Designation Director tax PAN Name Jaqeline Christiane Kapur Date of signing of balance-sheet 02-09-2009 (III) DIN or income- 01944791 Pre-fill Designation Director ....
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....tors only, but in Form No. 23AC, it was shown to have been signed by all the four directors. 6. Learned counsel for the petitioners challenged the notice and subsequent proceedings thereto, primarily on the ground, that the allegation even if we take to be correct on their face value, it does not constitute an offence under section 633 of the Companies Act. 7. It is contended that in order to attract the provisions of section 633, false material particulars should be with regard to contents in the balance-sheet, so that the third party be not misled with regard to status of the company. 8. Furthermore, false information so disclosed should be as such which should be known to the directors, who sign the balance-sheet. The purpose of....
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....lcutta High Court has held as under (page 109) : "There is, in my view, no misdeclaration that would attract the penalty under section 628 of the Act. I do not see any false or mis-leading statement having been made. Notwithstanding the show-cause notice not having relied on the second limb of section 628 inasmuch as the same has been urged, I take that into consideration. In the context of the report, there is no material concealment of information by such statement. In any event, the directors report is contained in reports which detailed the financial position of the company and any one interested could have skipped over the pages to come to the schedule to the balance-sheet in order to ascertain the financial status of the company . ....
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....ation. The present petition therefore is premature. 14. It is also the contention of learned counsel for the respondent that in this case, admittedly information given in Form No. 23AC is misleading and not correct, as it has been mentioned that the balance-sheet has been signed by four directors, whereas it is signed by two directors only. 15. On consideration, I find force in the contention raised by learned counsel for the petitioners. 16. The reading of section 628 shows that the directors of the company, can be prosecuted for misleading statement in the balance-sheet, but typo-graphical error cannot be a ground to prosecute. Admittedly, under section 220 of the Act, balance-sheet is not required to be signed by all the directo....