INCOME TAX OFFICER Vs. ANIL BATRA

JUDGEMENT

(1.) THESE petitions raise an important question of law concerning the liability of the Director of a company which has been proceeded against by the Income Tax Department ('ITD') under Section 276 -B of the Income Tax Act, 1961 ('IT Act'). The Court is of the view that there are sufficient grounds for grant of leave to appeal. Accordingly, these three petitions are allowed and the cases are directed to be registered as criminal appeals and numbered as such by the Registry.

(2.) WITH the consent of learned counsel for the parties, the appeals are taken up for final hearing.

(3.) AS regards AYs 1983 -84 and 1984 -85 the trial Court by its judgment dated 9th August 1995 convicted the company and its two directors, i.e., Mr. Anil Batra and Mr. C.L. Batra, Accused Nos. 2 and 3 ('A -2 and A -3) respectively. While all the three accused were directed to pay Rs. 7,000 each as fine, A -2 and A -3 were sentenced to undergo simple imprisonment ('SI') for three months each and in default of payment of fine, A -2 and A -3 were to undergo SI for a further period of three months each by an order on sentence dated 11th August 1995.