M.R. PRATAP vs V.M. MUTHUKRISHNAN

The Supreme Court upheld the prosecution of the Managing Director of a Private Limited Company under Section 277 of the Income-tax Act, 1961 for filing a false return. The Court clarified that the term 'person' in Section 277 includes the individual who verifies the return on behalf of the assessee, thus affirming the statutory obligation of the principal officer to sign tax returns as per Section 139 and Section 140(c). The amendments made by the Taxation Laws (Amendment) Act, 1975, including the introduction of Section 278B, were found to reinforce the liability of the Managing Director in such cases.