2023 (3) TMI 929

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....r is professional executive director who had not taken part in the affairs of the Company in last Six years, he is resident of Netherlands, the averments in the complaint are insufficient to constitute offence under Section 276B read with Section 278B of the Income Tax Act, 1961. 3. In support of his submission he relied on the judgment of the Apex Court in the case of National Small Scale Industries Corporation Vs. Harmeet Singh Paintal and Another reported in (2010) 3 SCC 330 and Dayle De'souza Vs. Government of India Through Deputy Chief Labour Commissioner and Anr reported in 2021 SCC OnLine SC 1012. 4. Per contra, learned advocate for the respondent No.1 invited my attention to the provisions of Section 276B read with Section 278B o....

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....shed for the act committed by the Accused as per U/s. 276-B of the I.T. Act, 1961. 7. Additionally, paragraph 3 as reflected in sanction order reads as under :- From the Return of Income for AY 2017-18. It is observed that there are five directors namely Vipin Jain, Paramjitsingh Datarsingh Sahi, Karanraj Parmjeet Sahi Harkeerat Paramjitsingh Sahi and Petrus Lambertus Maria Hermans. The directors were in charge of and responsible to the Company & for conduct of business of the Company for the relevant year and therefore liable for prosecution within the meaning of Section 278B of the Act. 8. Paragraph 9 of order of learned Commissioner of Income Tax reads as under :- 9. Thus, the above mentioned persons being persons responsible for ....