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Six rules arising from applications under sections 397, 401, and 482 of the Code of Criminal Procedure, 1973, for quashing complaints under sections 276(b), 276B, 276(d), and 276D of the Income-tax Act, 1961, and orders passed by the Chief Presidency Magistrate, Calcutta. Detailed Analysis: 1. Complaints and Sanctions: The complaints were filed against directors and a principal officer for various failures under the Income-tax Act. The issue raised was whether the directors could be considered principal officers. The defense argued that the sanction described all persons as directors except one, indicating the case cannot proceed against them. However, the definition of a principal officer under the Income-tax Act was discussed, emphasizing that any person connected with management upon whom the Income-tax Officer has served a notice can be a principal officer. It was concluded that evidence is needed to determine if directors acted as agents or principal officers. 2. Multiplicity of Principal Officers: The argument was made regarding whether a company can have more than one principal officer. The defense contended that directors should be treated as agents of the company, and there is no restriction on the company having multiple officers. Reference was made to legal sources supporting the view that directors are agents of the company. The court noted that evidence is required to establish the role of directors and determine if they acted as managers. 3. Jurisdiction of the Magistrate: The court deliberated on the jurisdiction of the Magistrate to issue process in the case. It was argued that the complaint did not require all details upfront and that the role of directors as agents or principal officers would be revealed through evidence. The court held that it would be premature to quash the proceedings at that stage and that the determination of whether accused persons were principal officers or agents should be made after witness examination. 4. Outcome: Five of the petitions were dismissed, except for one which was granted due to being barred by limitation. The court emphasized the need for evidence to establish the roles of the accused individuals and directed the expedited handling of the case, noting the abatement of the rules concerning the deceased individual. In conclusion, the judgment addressed the complexities surrounding the designation of directors as principal officers, the role of directors as agents of the company, and the necessity of evidence to determine liability. The court emphasized the importance of a thorough examination of facts through evidence before reaching a conclusive decision and upheld the jurisdiction of the Magistrate to proceed with the case.
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