Judicial approach in relation to economic offences. - Income Tax - 1769/CBDT

INSTRUCTION NO. 1769/CBDT Dated: August 13, 1987 In a recent decision in the State of Gujarat Vs. Mohanlal Jitamalji Porwal, (1987) I Judgement Today 183 (SC) the Supreme Court has observed as under: " ...Ends of justice are not satisfied only when the accused in a criminal case is acquitted. The community acting through the State and the public prosecutor is also entitled to justice. The cause of the community deserves equal treatment at the hands of the court in the discharge of its judicial functions. The community or the State is not a persona non grate whose cause may be treated with disdain. The entire community is aggrieved if the economic offenders who ruin the economy of the State are not brought to book. A murder may be committed in the heat of the moment upon passions being aroused. An economic offence is committed with cool calculation and deliberate design with an eye on personal profit regardless of the consequence to the community. A disregard for the interest of the community can be manifested only at the cost of forefeiting the truth and faith of the community in the system to administer justice in an even handed manner without fear of criticism from the quarters which view white collar crimes with a permissive eye unmindful of the damage done to the national economy and national interest....". The observations are reproduced by Appellate Tribunal for Forfeited property in Mira Rani Mazumdar vs. Competent Authority, Calcutta in (1987) 166 ITR 237. The above judicial approach in relation to economic offence needs to be kept in view by the officers of the Department while dealing with such cases. These observations, may, therefore, be brought to the notice of all the officers working in your charge. The Standing counsels and Departmental Representatives appearing before courts and Tribunal should also be advised to make use of it while representing the Department in such cases.