9911796707
|
Home
Issues:
Acquittal under section 276B read with section 278B of the Income-tax Act, 1961; Validity of sanction for prosecution; Opportunity of hearing before granting sanction; Compounding of offence before institution of prosecution; Remand to trial court for further proceedings. Analysis: The judgment involves appeals against the acquittal of accused under section 276B read with section 278B of the Income-tax Act, 1961. The accused were partners in a firm that obtained a construction contract and failed to deduct tax at source from payments to sub-contractors for four assessment years. Penalty proceedings were initiated, quashed on appeal, and prosecution sanctioned. The trial magistrate acquitted the accused, leading to appeals challenging the correctness of the judgment. The appellant argued that the acquittal was erroneous, while the defense contended that the magistrate's decision was valid and no interference was warranted. The defense also raised concerns about the validity of the prosecution sanction, arguing that it was necessary to consider the penalty proceedings and provide an opportunity of hearing before granting sanction. The court emphasized the importance of a valid sanction to prosecute, noting that the issue was not raised during the trial. It allowed the original complainant to present relevant material on the validity of the sanction. The court highlighted the distinction between section 279 of the Income-tax Act and section 197 of the Code of Criminal Procedure, particularly regarding the provision for compounding offences before prosecution. The case was remanded to the trial court to allow the complainant to submit evidence on the sanction's validity, consider whether compounding was assessed, and determine if an opportunity of hearing should precede granting sanction. In conclusion, the appeals were accepted, and the acquittal judgment was quashed. The matters were remanded to the trial court for further proceedings in light of the court's observations on the validity of the prosecution sanction and related considerations.
|
