Section 56 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 in hindi
Offences by companies.
- (1)Where 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.
- (2)Nothing in sub-section (1) shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
- (3)Notwithstanding anything in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed 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, 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.
- (4)Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, without prejudice to sub-section (1) or sub-section (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 in accordance with the provisions of this Act.
- (5)In this section—
- (a)"company" means a body corporate, and includes —
- (i)an unincorporated body;
- (ii)a Hindu undivided family;
- (b)"director", in relation to —
- (i)an unincorporated body, means a participant in the body;
- (ii)a Hindu undivided family, means an adult member of the family; and
- (iii)a company, means a whole-time director, or where there is no such director, any other director or manager or officer, who is in charge of the affairs of the company.
- (a)"company" means a body corporate, and includes —
Summary
- Companies and the people running them are held responsible for crimes committed under this law.
- If a company breaks the law, every person in charge and responsible for its business is considered guilty.
- An individual can avoid punishment if they prove they did not know about the crime or tried their best to prevent it.
- High ranking officials like directors or secretaries are also guilty if they helped commit the crime or were careless.
- The term company in this part of the law also includes groups that are not incorporated and Hindu undivided families.
- For a Hindu undivided family, the word director refers to any adult member of that family.
Practical examples
FAQ
1. Who is held responsible if a corporation commits an offence under Section 56 of the Black Money Act?
Under Section 56 of the Black Money Act, both the company itself and every person who was in charge of and responsible for its business at the time are considered guilty.
2. Can a director be punished under Section 56 of the Black Money Act if they were just negligent?
Yes, Section 56 of the Black Money Act states that if an offence is attributable to any neglect on the part of a director, manager, or secretary, they shall be deemed guilty.
3. How does the Black Money Act define a company for the purposes of Section 56?
According to Section 56 of the Black Money Act, a company includes any body corporate, an unincorporated body, or a Hindu undivided family.
4. Does Section 56 of the Black Money Act allow a person to prove their innocence?
Yes, Section 56 of the Black Money Act provides that a person will not be punished if they prove the offence happened without their knowledge or that they worked hard to prevent it.
5. Who counts as a director for a Hindu undivided family under Section 56 of the Black Money Act?
For a Hindu undivided family, Section 56 of the Black Money Act defines a director as any adult member of that family.
Test yourself
Q1.Under Section 56 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, if a company commits an offence, who besides the company is deemed guilty?
Q2.According to Section 56 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, what must a person prove to avoid liability for a company offence?
Q3.Under Section 56 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015, which of these is included in the definition of a company?
Q4.In the case of a Hindu undivided family, who is considered a director under Section 56 of The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015?