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CS Executive · Tax Laws and Practice · Computation of Total Income and Tax Liability of various Entities

Where an offence under the Income-tax Act, 2025 is committed by a Hindu undivided family, who is deemed guilty of the offence in the first instance?

The karta is deemed guilty of an offence committed by the HUF and can be proceeded against. He escapes punishment by proving that the offence occurred without his knowledge or that he exercised all due diligence to prevent it.

  1. AThe karta, who can escape punishment by proving the offence was without his knowledge or that he exercised all due diligenceCorrect
  2. BEvery coparcener equally, with no defence available
  3. CThe eldest female member of the family
  4. DThe Assessing Officer who assessed the family

Explanation

Section 488(1) deems the karta guilty of an offence by the HUF. Under 488(2) he is not punishable if he proves it was committed without his knowledge or that he exercised all due diligence. Other members become liable only if the offence is proved to be with their consent, connivance or neglect.

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