liquidity problems of the company. The 2nd respondent completely disregarded section 278B of the Income Tax Act, which expressly provides that only such person ... holding a person as a Principal Officer of a company and Section 278B clearly states that where an offence under this Act has been committed
have committed the
offence punishable u/s.276B, R/w. Sec.278B of Income Tax
Act, 1961. (Herein after referred ... offence committed
by accused No.1 Company by virtue of Sec. 278B of the
I.T. Act, hence the complaint.
3. On presentation
they should not be prosecuted under Section
276B and Section 278B of the Act. In response to the notices,
authorised representative of the petitioners ... considered. I am convinced that
offence u/s 276B and u/s 278B of the Act have been
committed. It is further observed that
show cause as to why prosecution under
section 276B read with section 278B of the Income Tax Act, 1961
should not be launched for delay ... sought compounding of the
offences under section 276B read with section 278B of the
Income Tax Act, 1961 and those applications have been granted
charge
under Section 276C(1) , 276C(2) and 277 r/w Section 278B of
the Act were framed against the accused ... Dinesh Kumar Shah (1997) 223 ITR 68
(Madras) while interpreting Section 278B of the Act, it was
held that :-
"18. The effect of this
Offence complained of/ proved : U/s 276C(2)/277 r/w 278B IT
Act
(f)Plea of accused : Pleaded not guilty
(g)Final order : Convicted ... persons for the offences u/s
276C(2)/277 read with section 278B of Income Tax Act (hereinafter
to be referred
Director
for the offence punishable u/s 276-B r/w 278B of the Income Tax Act
(for short the 'Act'), 1961 pertaining ... Income Tax Act, 1961 .
15. Relevant provisions of section 276B & 278B of the Act are
reproduced below for reference:-
[276B. Failure
Final order : Convicted for the
offence U/s 276B
r/w Section 278B &
278E of Income Tax
Act, 1961.
(g)Date of such order ... arguments on charge heard and charge under Section 276B
read with Section 278B & 278E of the Act were framed
against the accused
Final order : Convicted for the
offence U/s 276B
r/w Section 278B &
278E of Income Tax
Act, 1961.
(g)Date of such order ... arguments on charge heard and charge under Section 276B
read with Section 278B & 278E of the Act were framed
against the accused
Offence complained of/ proved : U/s 276C(2)/277 r/w 278B IT
Act
(f)Plea of accused : Pleaded not guilty
(g)Final order : Convicted ... persons for the offences u/s 276C(2)/277 read
with section 278B of Income Tax Act (hereinafter to be referred
