2011 (4) TMI 1167 - HC - Income Tax

Appeal against acquittal respondent alleged of producing bogus TDS certificates and obtaining refund order by playing fraud respondent as an income-tax practitioner submitted the income-tax return on behalf of one Shri P. ThirunavukarasuHeld - that - Appellant did not discharged burden of proving that Shri P. Thirunavukarasu is not a fictitious person. Also it is clear from facts that respondent has nothing to do with the withdrawal of the refunded amount also. Further acquittal of the accused by the trial court further strengthens the innocence of the respondent. Unless the judgment of the trial court is found to be perverse this court cannot interfere with the same. In this case appellant is not able to point out any material on record to show that the judgment of the trial court is perverse requiring interference at the hands of this court trial court was right in acquitting the respondent appeal fails and the same is dismissed.

Summary

Issues:
Appeal against acquittal - Allegations of committing various offences under IPC and Income-tax Act - Fabrication of TDS certificate - Role of respondent in the fraudulent transaction - Existence of fictitious person - Applicability of findings from Income-tax Appellate Tribunal and High Court judgments in related cases.

Analysis:
1. The respondent, a chartered accountant, faced allegations of submitting a fabricated TDS certificate and income-tax return, leading to a refund order. The prosecution argued that the respondent played a role in the fraudulent transaction, but the trial court acquitted him, prompting the appellant to challenge the decision.

2. The key prosecution witnesses, including Income-tax Officers and bank officials, testified about the submission of documents, opening of bank accounts, and subsequent doubts regarding the authenticity of the TDS certificate. The respondent denied the allegations, claiming innocence and attributing the actions to a client introduced by a third party.

3. The crucial dispute revolved around the existence of the person named in the documents, Shri P. Thirunavukarasu. The prosecution contended that this person was fictitious, while the respondent maintained his authenticity, supported by findings from the Income-tax Appellate Tribunal and High Court judgments in related cases.

4. The appellate court analyzed the evidence and emphasized the lack of proof implicating the respondent in fabricating the TDS certificate. The court highlighted the importance of establishing the non-existence of Shri P. Thirunavukarasu to substantiate the charges, which the prosecution failed to do, leading to the acquittal.

5. The appellate court reiterated the principle that judgments of trial courts should not be overturned unless found to be perverse. In this case, the lack of material to challenge the trial court's decision reinforced the innocence of the respondent, resulting in the dismissal of the appeal and upholding of the acquittal.

6. Ultimately, the court concluded that the trial court's decision to acquit the respondent was justified based on the evidence presented and the failure to prove the respondent's involvement in the alleged fabrication of documents. The appeal was dismissed, affirming the respondent's innocence in the case.