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Late submission of income tax return, issuance of non-bailable warrants, application for anticipatory bail, deposit of tax due, conversion of warrants, discretion of Magistrate in issuing warrants, factors for granting anticipatory bail, amount of tax due, conditions for granting bail. Analysis: For the financial year 1982-83, the petitioners filed their income tax return two years and two months late. Despite submitting the return after receiving a notice from the Income-tax Officer, the tax was assessed, appeals were filed, and the tax due was paid in instalments, with the final instalment deposited in February 1988. Subsequently, a complaint under sections 276CC and 278B of the Income-tax Act, 1961 was lodged, leading to the issuance of non-bailable warrants by the Chief Judicial Magistrate (Economic Offences), Jaipur. The petitioners then sought anticipatory bail under section 438 of the Criminal Procedure Code before the Sessions Judge, Jaipur City, who directed them to appear before the Magistrate and apply for bail, with prior notice to the Income-tax Department to prevent the execution of the warrants. The petitioners' counsel argued that the tax had been fully paid, the delay in filing was not intentional, and the issuance of non-bailable warrants was unwarranted harassment. Precedents were cited where anticipatory bail was granted in similar cases or non-bailable warrants were converted to bailable warrants. In contrast, the Department's counsel cited cases emphasizing imprisonment for economic crimes. The judge noted that the issuance of warrants, whether bailable or non-bailable, should not dictate the grant of bail; instead, the decision should be based on the specific circumstances of each case, as per sections 437 and 438 of the Criminal Procedure Code. The judge highlighted that economic offenses are increasing, but a blanket denial of anticipatory bail in such cases is not justified. Factors like tax payment, timely filing of subsequent returns, amount due, likelihood of absconding, and other relevant considerations should guide bail decisions. Comparing the present case to a precedent where warrants were converted due to a higher tax amount, the judge found the petitioners' situation favorable, given the tax due was Rs. 50,000 and already paid. Consequently, the judge ruled that if the petitioners appear before the trial court within 15 days, the warrants would be canceled; otherwise, they would be executed. If they appear, bail would be granted under specified conditions, including interrogation availability, non-influence of witnesses, and travel restrictions. In conclusion, the judgment underscores the discretionary power of the Magistrate in issuing warrants, the importance of considering individual circumstances in bail decisions for economic offenses, and the need to balance legal procedures with fairness and practicality in such cases.
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