2009 (5) TMI 85 - HC - Income Tax

Power of Appellate court to reverse the order of acquittal failure to furnish return - offence punishable under sections 276 and 278 - The reasons given by the trial court for acquitting the respondent appears to be reasonable and are based on evidence. It is well-settled that even if on the basis of the same evidence, if other view is possible, the appellate court will not be justified in reversing the order of acquittal if the same is based on evidence on record and the view taken is a possible and reasonable view.

Summary

Issues:
Challenge to judgment of acquittal under sections 276 and 278 of Income-tax Act 1961.

Analysis:
The appellant challenged the judgment of acquittal dated March 2, 1995, rendered by ACJM, Indore, in Criminal Case No. 04/1990, where the respondent was prosecuted for an offence under sections 276 and 278 of the Income-tax Act 1961 but was acquitted. The prosecution alleged that the respondent, while working in a private limited company at Dewas, filed the return after a delay of 22 months for the year 1982-83, constituting an offence under the Income-tax Act. The appellant contended that there was sufficient evidence on record to prove the offence and that the trial court's findings were perverse. The prosecution submitted documents and examined witnesses to support its case.

Legal Precedents:
Referring to the case of Bihari Nath Goswaini v. Shiv Kumar Singh and State of M. P. v. Bacchudas alias Balram, the court highlighted that the appellate court can review the evidence on which an order of acquittal is based. It emphasized that the court should interfere with an order of acquittal only if there are compelling and substantial reasons to do so. The principle is to adopt a view favorable to the accused when two views are possible, to prevent a miscarriage of justice.

Court's Decision:
After reevaluating the evidence presented by the prosecution, the court concluded that it was not justified in interfering with the trial court's order of acquittal. The reasons provided by the trial court for acquitting the respondent were deemed reasonable and evidence-based. The court reiterated that even if another view is possible based on the same evidence, the appellate court should not reverse an order of acquittal if it is based on evidence on record and is a possible and reasonable view. Consequently, the appeal was dismissed, and no merit was found in the appellant's arguments.