TMI Blog1987 (4) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... section 276B of the Income-tax Act, 1961, which is punishable with imprisonment and fine. In these rules seeking to quash the proceedings, it has been contended that the prosecution of the company for such an offence is incompetent because no sentence of imprisonment can be imposed on it. This ground was canvassed before the learned Magistrate in both the cases but as did not find favour with him, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d single judge of the Allahabad High Court in Laxmi Ratan Cotton Mills v. S. K. Bhatnagar [1975] Cri LJ 1881, upon which the learned Magistrate has relied, and also a learned single judge of the Madras High Court in Rayala Corporation (P) Ltd. v. F. M. Muthuramalingam, ITO [1981] 129 ITR 675, have taken the view that a company can be prosecuted even under section 276B of the Act mainly on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, it will have to do so which, however, will be incapable of execution as a company cannot be committed to prison. Since a court is not expected to make an order which is likely to be infructuous, it must be held that the Legislature never intended the prosecution of a company for such an offence notwithstanding the definition of the word " person " as, given in section 2(31) of the Act. It appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act. It may also be noted in this connection that in Laxmi Ratan Cotton Mills' case [1975] Cri LJ 1881 (All), to which reference has been made by the learned Magistrate, his Lordship had observed that since in the case before him, the company was not impleaded through its principal officer, the complainant could not proceed against the company. In the instant case also, the company was not imple ..... X X X X Extracts X X X X X X X X Extracts X X X X
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