LAXMI RATAN COTTON MILLS Vs. S K BHATNAGAR

JUDGEMENT

(1.) A complaint under Section 276-B of the Income-tax Act, 1961 was filed in the Court of the City Magistrate, Kanpur by Sri S. K. Bhatnagar. Income-tax Officer, Salary Circle, Special Ward. Kanpur against:

(2.) ON receipt of summonses the accused put in appearance before the Court. An application was filed on their behalf on 26th May, 1972 praying that any two out of the above three accused may be discharged. It was alleged in this objection that either the company or the Principal Officer can be held responsible, for the breaches contemplated by Section 276-B of the Income-tax Act. The prosecution should have come forward with a definite case as to who is responsible for deducting tax and payment of salaries. This not having been done the prosecution was value and evasive.

(3.) THE City Magistrate, Kanpur rejected the prayer of the opposite parties vide his order dated 26th May. 1972. It was observed by the City Magistrate that under Section 204 (1) of the Income-tax Act the person responsible for payment for purposes of Section 192 is the company itself including the Principal Officer thereof. The question as to who is the Principal Officer and whether there can be more than one Principal Officer is a Question depending on evidence to be produced by the complainant and the accused. The City Magistrate was of the view that this was too premature stage for raising this objection.