Offences by companies
Section 487(1) of Income Tax Act 2025
(1) If an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Section 487(2) of Income Tax Act 2025
(2) The provisions of sub-section (1) shall not apply if the person referred in the said sub-section proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
Section 487(3) of Income Tax Act 2025
(3) If it is proved that an offence under this Act has been committed by a company with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, then irrespective of the provisions of sub-section (1), such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.
Section 487(4) of Income Tax Act 2025
(4) Where an offence committed by a company under this Act is punishable with imprisonment and fine, then, without prejudice to the provisions contained in sub-section (1) or (3), such company shall be punished with fine and every person referred to in sub-section (1), or the director, manager, secretary or other officer of the company referred to in sub-section (3), shall be liable to be proceeded against and punished as per the provisions of this Act.
Section 487(5) of Income Tax Act 2025
(5) In this section,—
(a) “company” means a body corporate and includes—
(i) a firm; and
(ii) an association of persons or a body of individuals, whether incorporated or not; and
(b) “director”, in relation to—
(i) a firm, means a partner in the firm;
(ii) any association of persons or a body of individuals, means any member controlling the affairs thereof.