1994 (1) TMI 57 - HC - Income Tax

Summary

Issues Involved:
The accused filed a petition u/s 482 of the Criminal Procedure Code to quash a complaint against them for offenses u/s 276C(1) and 277 of the Income-tax Act, 1961, and other sections of the Indian Penal Code.

Allegations and Defense:
The complaint alleged that the accused, a private limited company and its managing director, had fabricated accounts, introduced unaccounted funds, and suppressed income for the assessment year 1980-81, attempting to evade taxes. The accused challenged the complaint based on appellate forums not upholding the Income-tax Officer's assessment and the accused's age exceeding 70 years.

Court Analysis:
The court considered the submissions and found that the complaint contained ingredients for the alleged offenses, despite certain orders and guidelines cited by the defense. Referring to legal precedents, the court held that the pendency of reassessment proceedings does not bar criminal prosecution. The court emphasized that the criminal court must independently assess the evidence before it, not bound by the results of proceedings under the Income-tax Act.

Decision:
Based on the above analysis and legal principles, the court dismissed the petition to quash the complaint, stating that the instructions or guidelines for prosecution based on age or penalty limits do not override the specific provisions of the Income-tax Act.