Sections 276CC, 278B Prosecution Quashed as Director Resigned Before Return-Filing Default: Bombay HC

Rakesh Bhailalbhai Gandhi Vs ITO (Bombay High Court) The Bombay High Court quashed the criminal proceedings initiated under Sections 276CC and 278B of the Income Tax Act against a former director, holding that he had ceased to be a director before the alleged offence of non-filing of the company’s income tax return arose. The Court examined Form 32 and the Registrar of Companies’ master data, which established that the petitioner’s resignation had been accepted with effect from 30 December 2013. Since the alleged default related to the company’s failure to file its return f...