9911796707
TMI Blog1994 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 278B of the Income-tax Act, 1961. The allegations in it are briefly as follows : The first accused is a registered firm which comes under section 44AB of the Act. Accused Nos. 2 to 4 are the partners of the first accused firm and they are responsible for the business of the first accused firm. The first accused is an assessee to income-tax. For the assessment year 1985-86, the accused had to submit the return of income on or before July 31, 1985, as per section 139(1) of the Act. But the accused had not filed the return within July 31, 1985. Therefore, a notice under section 148 of the Act was issued on December 4, 1986. The accused submitted the return only on August 26, 1986, signed by the third accused, before the Incometax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igned the return of income for 1985-86, it can be taken that he only signed the return of income and he alone can be proceeded with and other partners, viz., accused Nos. 2 and 4, cannot be proceeded with. Failure to file the audit report within the specified time is violation of section 44AB of the Act and penalty has been imposed for the said delayed filing of the audit report and on appeals filed before the Appellate Assistant Commissioner, those penalties were set aside and in those orders it was held that there was no wilful delay in filing the audit report. Learned counsel would add that that finding will have a bearing on the alleged delayed filing of the income-tax return, inasmuch as those audit reports were filed along with the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e return of income was filed, signed by the third accused. In paragraph 6, it is alleged that the accused wilfully did not file the return of income before the income-tax authorities on or before July 31, 1985. It is further alleged that accused Nos. 2 to 4 are fully aware that the return of income should be filed on or before July 31, 1985, on behalf of the first accused. In spite of that they have filed the return of income with a delay of 25 months and for that penalty proceedings were initiated. It is further alleged that the accused have wilfully delayed the filing of the return of income even after obtaining the audit report on March 31, 1986, and after issue of notice on December 4, 1986. I shall refer to section 278B of the Act whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings in exercise of its powers under section 482, Criminal Procedure Code. In that case, the complaint was filed against the company, its directors and the manager. So far as the directors are concerned, there is not even a whisper nor a shred of evidence nor anything to show, apart from the presumption drawn by the complainant, that there is any act committed by the directors from which a reasonable inference can be drawn that they could also be vicariously liable. In those circumstances, it was held that no case against the directors has been made out ex facie on the allegations made in the complaint and the proceedings against them were quashed by the High Court. Such is not the case here. In these cases, allegations are made in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity alleged by learned counsel for the petitioners was that the sanction order does not at all refer to the order of the Appellate Assistant Commissioner dated July 16, 1992, in which the appellate authority had held that there was no wilful delay in filing the audit report. For the reasons which I have given in my discussion, the failure to consider the sanction order, will not vitiate the order. Learned counsel for the petitioners drew my attention to certain passages in the order of the appellate authority to which I shall refer now. In the order dated July 16, 1992, the appellate authority has stated in paragraph 5 as follows : " Therefore, even though the appellant did not obtain the audit report by the specified dates, it has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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