Directors are not liable for the offence committed by the company merely on the ground that they are directors.

1. M/s MD Overseas Limited  vs Director General of Income-tax and others  (HC)

 

If a search under section 132 of the Income Tax Act, 1961 (the IT Act) is challenged on the ground that information leading to reasons to believe for authorising search was irrelevant then how should this question be resolved? Should the court,

1. Look into the records and decide it alone; or

2. Disclose the information to the aggrieved person and then adjudicate upon it, after hearing the parties?

 

Held, If search under Income Tax Act is challenged, the Department has to disclose information except source.

 

2. M/S J.S.D. Colonizers (P) Ltd vs Union Of India & Another (HC)

S. 234A - Waiver of Interest - 'Whether the period, during which account books were seized by the income tax department (the Department), is unavoidable circumstance within the meaning of the notification dated 23.5.1996 (the Notification) issued by the CBDT under section 119(2) (a) of the Income Tax Act, 1961 (the Act), so as to entitle an assessee for the waiver of interest under section 234A of the Act'. Held Interest for the period accounts books were seized should be waived.

 

 

3. Yogendra Singh vs Ranbir Sharma & Another (HC)

 

Directors are not liable for the offence committed by the company merely on the ground that they are directors.