2008 (1) TMI 316 - HC - Income Tax

Appellant-Union of India being aggrieved by the judgment passed by the learned Additional Chief Judicial Magistrate acquitting the present respondent for offences punishable u/s 276CC & 277 appellant has submission that the learned court below committed factual error in acquitting the accused held that no case was made out by appellant to show that there was willful default (in filing return) & HC would not interfere with an order of acquittal merely because yet another view was possible

Summary

Issues:
1. Appeal against acquittal for offences under sections 276CC and 277 of the Income-tax Act, 1961.

Analysis:
The appellant-Union of India challenged the judgment of the Additional Chief Judicial Magistrate acquitting the respondent for offences under sections 276CC and 277 of the Income-tax Act. The prosecution argued that the accused filed his return after a significant delay, not showing the correct income, leading to the alleged offences. The appellant contended that the lower court erred in acquitting the accused and took a hyper-technical view of the matter.

The respondent's counsel argued that there was no wrongdoing on the part of the accused, attributing any lapses to the counsel. It was emphasized that if the court's view appears plausible and there is no wilful default, the High Court should not interfere in an appeal against acquittal. Reference was made to a previous case where the High Court acquitted the accused due to the absence of wilful default, highlighting the burden on the Department to prove such default with clear and reliable evidence.

Upon reviewing the evidence and legal precedents, the court found that the prosecution failed to establish wilful default on the part of the accused. Citing the principle that mere delay in filing a return is not sufficient to prove an offence, the court upheld the lower court's decision of acquittal. It was reiterated that the High Court should not interfere in acquittals solely based on the possibility of an alternative view. Consequently, the appeal was dismissed, and the bail bonds of the accused were discharged.

In conclusion, the High Court dismissed the appeal by the Union of India, upholding the acquittal of the respondent for offences under sections 276CC and 277 of the Income-tax Act. The judgment emphasized the importance of proving wilful default and the court's reluctance to interfere in acquittals based on differing views, ultimately affirming the decision of the lower court.