ITO Vs. DELHI IRON WORKS (P) LTD

JUDGEMENT

(1.) ALL the above appeals are being disposed of together as not only the facts, but question of law raised therein are same.

(2.) RESPONDENT is a private limited company. Appellant filed nine complaints before the Addl. Chief Metropolitan Magistrate (ACMM) praying therein that the respondent be summoned, tried and punished for the offence under S. 276B of the IT 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 IT Department, within the prescribed period, thus, had committed offence punishable under S. 276B of the Act.

(3.) RESPONDENT preferred criminal appeals before the Addl. Sessions Judge, Delhi thereby challenging its conviction under S. 276B of the Act, which have been allowed by the orders impugned in these appeals. Respondent has been acquitted of the charge under S. 276B of the Act on the ground that since notices qua the director had been held defective, respondent can also not be convicted. It was further held that since no Individual Officer of respondent was held responsible for deduction of the tax and its deposit with the Department within the prescribed period, respondent being a legal entity managed by its officers cannot be held responsible, consequently, respondent has been acquitted.