Income Tax Act 1961 – Offence under Sections 276-B read with 278-B – In the absence of mandatory notice of Section 2(35)(b) delivered to the Director – accused no.8, he cannot be treated as principal officer for prosecution.

The petitioner original accused no.8 was an independent, non-executive and nominee Director of the S. Kumar Nationwide Limited from 27.6.2007 to 12.11.2011. 

Criminal case for offences under Sections 276-B read with 278-B of the Income Tax Act, 1961 was filed for failure to deposit TDS of Rs.2,98,29,252/-. 

The petitioner has challenged the orders of process / summons was issued against him on the ground that he is not the principal officer under Section 2(25) of IT Act.  He was not served with any notice treating him as principal officer under clause (b) of Section 2(35) for prosecution under above offences.   The mandatory notice under Section 2(35)(b) was not served on the petitioner.  The writ petition was allowed.

Judgment dated 20.12.2023 in Criminal Writ Petition No.3962 of 2022 of Anish Modi Vs. Union of India and another.