STANDARD CHARTERED BANK vs DIRECTORATE OF ENFORCEMENT .

The Supreme Court, in this judgment, addressed the interpretation of Sections 276C, 277, 278, and 278B of the Income Tax Act, 1961, particularly in relation to the prosecution of artificial persons like companies. The Court held that the previous majority view in Assistant Commissioner, Assessment-II, Bangalore & Ors. vs. Velliappa Textiles Ltd. was incorrect, emphasizing that legislative intent must be considered in statutory interpretation. The Court noted that Parliament had amended Section 278B to clarify the applicability of penalties to corporate entities, thus overruling the previous interpretation that mandated imprisonment for companies.