1987 (4) TMI 58

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.... the firm known as M/s. Sohan Lal Savinder Singh, are sought to be prosecuted under section 277 of the Income-tax Act, 1961 (for short the" Act "), read with some of the offences under the Indian Penal Code, such as sections 467, 468 and 471, for filing a return on behalf of the firm on October 1, 1971, with a false verification or at least knowing it to be false.The relevant allegations in this r....

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.... had filed the relevant account, Sawal Singh and Faqir Chand, since dead, were summoned, vide its order dated November 14, 1986. The petitioners impugn these proceedings and pray for the quashing of the same qua them at least in view of the non-fulfilment of the requirements of section 278B of the Income-tax Act. The relevant part of this section, i.e., sub-section (1), reads as follows: " S....

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.... Officer, A-Ward, Yamuna Nagar, in the complaint, annexure P-1, that any of the petitioners was either in charge of, or was responsible to, the company or the firm, for the conduct of its business and in the absence of the same, the petitioners could not be proceeded against for the offence under section 277 of the Act. On the contrary, says learned counsel, that it is the precise case of the comp....

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....e true.In the light of this accepted position by Mr. Ashok Bhan, it is patent that the petitioners, who never signed the above noted verification of the return nor made any statement before the Income-tax Officer or produced any account in that regard, cannot possibly be proceeded against. This is more so when there is not even an allegation to the effect that at the time of the commission of the ....