S.276 Income Tax Act | Director Cannot Be Individually Prosecuted for Transferring Company Asset to Relative Without Consideration: Delhi High Court

The Delhi High Court has ruled that a corporate director cannot be held criminally liable under Section 276, Income Tax Act, 1961 merely because a company asset was transferred to his relative, unless the company itself is also made an accused. The Court emphasized that failing to prosecute the company goes to the root of the matter and is not just a technical error. Case background involving tax recovery and…