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Issues: Petitions under section 482 of the Criminal Procedure Code for quashing criminal complaints filed under Income-tax Act and Indian Penal Code. Challenge to prosecution based on grounds of remand order and lack of evidence.
Analysis: The judgment by G. R. LUTHRA J. addresses two petitions filed by Shri Umesh Kumar Modi seeking to quash criminal complaints under sections 276C, 277, and 278B of the Income-tax Act, 1961, and sections 193 and 196 of the Indian Penal Code. The complaints were filed by Shri K.S. Sahni, Income-tax Officer, against M/s. Modi Industries Ltd., Shri M. L. Modi, Shri Umesh Kumar Modi, and others for concealment of income and false statements in income tax returns. The petitions challenged the prosecution on the grounds that the Income-tax Officer's findings were set aside by a remand order from the Commissioner of Income-tax (Appeal) X, New Delhi. The petitioner argued that since the evidence for both assessment years was the same, the complaint for the second year was also affected by the remand order. The petitioner contended that the remand order prevented the complainant from filing the complaint and that the lack of examination of a key witness due to his status as an accused undermined the evidence against him. However, the court held that the petitioner had signed the returns and must explain his liability for any false statements in the trial court. The court cited a Supreme Court decision stating that the pendency of reassessment proceedings does not bar criminal prosecution for tax offenses. Additionally, the court emphasized that High Courts should not interfere in interlocutory orders, such as summoning of accused, especially at preliminary stages, citing relevant legal authorities. Ultimately, the court found no merit in the petitions and dismissed them, vacating the stay of proceedings granted earlier. The judgment directed the Additional Chief Metropolitan Magistrate to proceed with the case. The cases, Criminal Misc. (Main) No. 1269 of 1985 and Criminal Misc. (Main) No. 1269-A of 1985, were disposed of accordingly.
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