Director Alone Cannot Be Prosecuted Under Income Tax Act For Transferring Company Assets To Daughter-in-Law Without Consideration: Delhi HC

The Delhi High Court ruled that a director alone cannot be prosecuted for transferring company assets to a relative without consideration under the Income Tax Act. The judgment clarifies corporate liability principles, stating that prosecution requires assessment of company and director responsibilities jointly. It reinforces due process in tax enforcement and protects individual directors from unilateral penal action without evidence of corporate complicity.