Prosecuting Directors Without Company is Abuse of Process: Delhi HC

Nilesh Agarwal Vs ITO (Delhi High Court) Taxman Forgot the Main Culprit! Delhi HC Quashes Case—But Leaves Door Open: Add the Company Try Again The Delhi High Court delivered a significant judgment in two connected criminal petitions filed by Directors of M/s SNR Buildwell Pvt. Ltd., seeking quashing of prosecution launched under Section 276 of the Income-tax Act. The Department had initiated criminal complaints against the Directors for allegedly transferring a company-owned Audi car to a family member to defeat tax recovery of about ₹4.44 crores. However, the Company itself – which owed...