Under Search and Seizure cash amounting to 5 crores is recovered from the director of the company. On seizure the director surrenders the money to IT officials. The question arises who would bear the additional demand of 5 crores,i.e., the company or the director on individual capacity???
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Search & seizure
Replies (2)
It depends on suspiscious evidence against the director for which search and seizure was conducted. If the evidence is of an individual nature, then the director shall be liable. But search and seizure is a dynamic process, so the company, too, shall be under scrutiny whether or not the unexplained cash was earned from any activity relating to the company.
Thank u Sir !!!
It will be very kind of you, if you could provide any case laws regarding the aforesaid issue.
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