TMI Blog2011 (2) TMI 1542X X X X Extracts X X X X X X X X Extracts X X X X ..... mmoned, tried and punished for the offence under Section 276-B of the Income Tax Act, 1961 (for short hereinafter referred to as the Act ). Shri R.K. Das and Shri S.K. Das, Directors of the Respondent were also arrayed as accused on the allegation that they being Principal Officers of the Respondent were also liable to deduct and deposit the tax from the interest paid to different companies. In nutshell, it was alleged that the Respondent and its Principal Officers had failed to deduct the tax at source (TDS) from the interest paid to M/s. Bhanamal Co. (P) Ltd., M/s. Banwari Lal Sons (P) Ltd. and M/s. Bhanamal Gulzari Mal (P) Ltd., and deposit the same with the Income Tax Department, within the prescribed period, thus, had committed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n acquitted by the Trial Court on the ground of non compliance of Section 2(35) of the Act. 6. At this stage, relevant it would be to refer to Section 194-A of the Act which reads as under: 194-A. Interest other than Interest on securities .-(1)Any person, not being an individual or a Hindu undivided family, who is responsible for paying to a resident any income by way of interest other than income {by way of interest on securities}, shall at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or y issue of a cheque or draft or by any other mode, whichever is earlier, deduct Income Tax thereon at the rates in force: Provided that an individual or a Hindu undivided family, whose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as envisaged under Section 276-B of the Act which reads as under: 276-B. Failure to pay the tax deducted at source.- If a person fails to pay to the credit of the Central Government, the tax deducted at source by him as required by or under the provisions of Chapter XVII-B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine. 9. Section 278-B covered cases where offences were committed by Companies. The section reads as under: 278-B. Offences by companies.-(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the compa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding the principal officer thereof; (iia) In the case of any sum payable to a non-resident Indian, being any sum representing consideration for the transfer by him of any foreign exchange asset, which is not a short-term capital asset, the authorised dealer responsible for remitting such sum to the non-resident Indian or for crediting such sum to his Non-resident (External) Account maintained in accordance with the Foreign Exchange Regulation Act, 1973 (46 of 1973), and any rules made there under; (iii) In the case of credit, or, as the case may be, payment of any other sum chargeable under the provisions of this Act, the payer himself, or, if the payer is a company, the company itself including the principal officer thereof. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipal Officer of the company. Only for this reason, Shri S.K. Das had been acquitted treating the notice issued to the company as defective qua Shri S.K. Das. That would not mean that Respondent could also have been acquitted. 14. A company is not a natural person but legal or juristic person. But that would not mean that it is not liable to prosecution under the Act. In Standard Chartered Bank v. Directorate of Enforcement (2005) 8 SCC 530, Supreme Court held that juristic person is also subject to criminal liability under the relevant law. Only thing is that in case of substantive sentence, the order is not enforceable and juristic person cannot be ordered to suffer imprisonment. Other consequences, however, would ensue, that is, p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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