2018 (8) TMI 345 - HC - Income Tax

Non-cognizable offence punishable u/s 279-A - Compliance of proceedings under Section 155 of the Cr.P.C., 1973 - Held that - Vide the present petition, apart from the prayer clause (e) which has been made in the petition seeking setting aside of the order dated 21.09.2017 vide which the learned Trial Court had observed that the application filed by the petitioner seeking closure of the case and termination of proceedings due to the alleged non-compliance of mandatory provisions of Section 155 Cr.P.C., 1973 would be heard at the stage of the final arguments, there are other prayers made by the petitioner vide clauses (b)(c)(d) & (f) of the petition. On a consideration of the submissions that have been made on behalf of the petitioner and the respondent in relation to the proceedings dated 21.09.2017, presently the order dated 21.09.2017 of the learned Trial Court in CC No.515996/16 is set aside with directions to the learned Trial Court to dispose of the application filed by the petitioner under Section 155 of the Cr.P.C., 1973 before proceeding to hear the final arguments in the matter. The petitioner and the respondent both would be entitled to make submissions in relation to the applicability or otherwise of Section 155 of Cr.P.C., 1973 to the proceedings under the Income Tax Act. Petitioner seeks to withdraw the present petition qua the said prayers at prayer clauses (b)(c)(d) & (f) seeking liberty to seek redressal in accordance with law after disposal of the application under Section 155 of the Cr.P.C., 1973.

Issues Involved:
1. Compliance with Section 155 of the Cr.P.C., 1973 in relation to a non-cognizable offence under the Income Tax Act.
2. Applicability of Section 155 of the Cr.P.C., 1973 to provisions under the Income Tax Act.
3. Setting aside of various orders related to criminal prosecution under the Income Tax Act.
4. Disposal of application under Section 155 of the Cr.P.C., 1973 before final arguments.

Comprehensive Analysis:

1. Compliance with Section 155 of the Cr.P.C., 1973:
The petitioner contended that the provisions of Section 155 of the Cr.P.C., 1973 were not complied with concerning a non-cognizable offence under Section 279-A of the Income Tax Act. The Trial Court had deferred the consideration of this issue to the final disposal stage. The petitioner emphasized the necessity of disposing of the application seeking proceedings under Section 155 for proper adjudication. The respondent did not oppose the direction to the Trial Court to address the petitioner's application under Section 155 Cr.P.C., 1973.

2. Applicability of Section 155 of the Cr.P.C., 1973:
The respondent raised concerns regarding the applicability of Section 155 of the Cr.P.C., 1973 to the provisions of the Income Tax Act. Both parties were allowed to present their arguments on this issue. The High Court directed the Trial Court to allow submissions from both sides regarding the applicability of Section 155 of Cr.P.C., 1973 to proceedings under the Income Tax Act.

3. Setting aside of Various Orders:
The petitioner sought to quash various orders related to criminal prosecution under the Income Tax Act, including the criminal complaint, summoning order, charge-sheeting orders, and dismissal of an application for leading additional evidence. The petitioner decided to withdraw the petition concerning these prayers, with the intention to seek redressal after the disposal of the application under Section 155 of the Cr.P.C., 1973.

4. Disposal of Application under Section 155:
After considering submissions from both parties related to the Trial Court's order dated 21.09.2017, the High Court set aside the said order. The Trial Court was directed to dispose of the petitioner's application under Section 155 of the Cr.P.C., 1973 before proceeding to the final arguments. Both the petitioner and respondent were granted the opportunity to present arguments on the applicability of Section 155 of Cr.P.C., 1973 to proceedings under the Income Tax Act.

This detailed analysis covers the compliance with legal provisions, the applicability of laws, the quashing of previous orders, and the necessary steps to be taken regarding the application under Section 155 of the Cr.P.C., 1973.

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