2015 (3) TMI 764 - HC - Income Tax

Refund on the basis of forged TDS certificates - criminal prosecution against lawyer of main assessee submitting returns on behalf of assessee - Held that - The complainant ITO had not filed any complaint against the main assessee and only arrayed the respondent Advocate as an accused, who was stated to have submitted the income tax returns of relevant years on his behalf, for the reasons best known to him (ITO). That means, the respondent-accused had only submitted the income tax return along with all the indicated documents on behalf of main assessee. In other words, all the TDS certificates, which were purported to have been issued by the Northern Railway, were supplied by the main assessee to his Advocate. It was the main assessee, who had procured the documents from the concerned authorities and claimed the refund. Not only that, in case, the main assessee had claimed the refund on the basis of forged TDS certificates, then, the Income Tax Authorities were competent and well within their jurisdiction to reject his claim of refund and even to impose penalty under the relevant provisions of The Income Tax Act. Thereafter, the aggrieved party had a right to file the statutory appeal in this relevant connection. Be that as it may, therefore, the respondent-accused, who was an Advocate, had just submitted the income tax return on behalf of main assessee, cannot possibly be and indeed could not legally be held liable for criminal prosecution for procuring the documents by main assessee in order to attract the penal provisions of offences in question, as contrary urged on behalf of complainant-ITO. Thus the respondent was acquitted. Also see Income tax Officer Versus Sudesh Sharma 2015 (1) TMI 975 - PUNJAB & HARYANA HIGH COURT - Appeal against lawyer dismissed.

Issues Involved:
1. Appeal against judgments of acquittal in multiple cases involving identical questions of law and facts.
2. Allegations of submitting false documents for income tax refund.
3. Legal principles governing appellate courts in cases of acquittal.
4. Jurisdictional error or patent illegality in acquitting the accused.
5. Liability of the accused for preparing false documents supplied by the main assessee.
6. The role of the respondent-accused as an Advocate in submitting income tax returns on behalf of the main assessee.
7. Previous acquittals of the respondent-accused in similar cases.
8. Consideration of legal points in the appeal.

Analysis:

1. The judgment addresses the appeal against judgments of acquittal in multiple cases involving identical questions of law and facts. The court aims to dispose of the petitions for leave to appeal collectively to avoid repetition.

2. The case involves allegations that the respondent-accused, an Advocate, submitted false documents for an income tax refund claimed by the main assessee. The complainant, an Income Tax Officer, alleged that the TDS certificates submitted were not genuine, leading to the wrongful refund claim.

3. The judgment discusses the legal principles governing appellate courts in cases of acquittal, citing the need for "very substantial and compelling reasons" to disturb the trial court's decision. The court emphasizes the importance of giving proper weight to the trial court's findings.

4. The court examines whether there was a jurisdictional error or patent illegality in acquitting the respondent-accused. It concludes that the complainant failed to establish grounds for setting aside the judgments of acquittal.

5. The liability of the accused for preparing false documents supplied by the main assessee is analyzed. The court notes that the mere act of preparing the income tax return does not automatically make the respondent-accused liable for the offenses alleged.

6. The role of the respondent-accused as an Advocate in submitting income tax returns on behalf of the main assessee is considered. The court clarifies that the main assessee was responsible for procuring the documents and claiming the refund, not the respondent-accused.

7. Previous acquittals of the respondent-accused in similar cases are highlighted, indicating that the present case is covered by earlier judgments. This history influences the court's decision to dismiss the appeal.

8. The judgment concludes that there are no other significant legal points raised in the appeal, leading to the dismissal of the petitions for leave to appeal based on lack of merit.

This detailed analysis covers the issues involved in the judgment, providing a comprehensive overview of the legal aspects and reasoning behind the court's decision.

← Previous Next →