Gautham Vasudev Menon Vs ACIT (Madras High Court)
Former Director Not Liable for Company’s Tax Return Default After Prior Resignation; Income Tax Prosecution Set Aside Because Petitioner Was Not Director During Relevant Year; Criminal Proceedings Quashed Because ROC Records Confirmed Director’s Resignation; Former Company Director Gets Relief Because He Was Not in Charge During Alleged Offence Period.
The Madras High Court considered a Criminal Original Petition seeking to quash proceedings in E.O.C. No.24 of 2019 pending before the Additional Chief Metropolitan Magistrate, Egmore, Chennai.
The prosecution case was that the first accused company, assessed under the jurisdiction of the respondent Income Tax Department, had derived substantial income during Financial Year 2012-2013, including professional income, contractual income, and cash deposits. According to the Department, the accused were required to file the income tax return under Section 139(1) of the Income Tax Act, 1961 on or before 30.09.2013 for Assessment Year 2013-2014. Since no return was filed despite issuance of a show cause notice dated 27.04.2016, the Department alleged commission of an offence under Section 276CC of the Act and filed a complaint.
The petitioner was arrayed as Accused No.3. The petitioner contended that he had been inducted as a Director of the first accused company on 01.06.2010 and had resigned from the directorship with effect from 02.05.2011. To substantiate this claim, the petitioner produced Form No.32 and related documents filed before the Registrar of Companies.
