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TMI Blog1991 (10) TMI 5X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act and sections 120B, 196, 198, 199, 200, 465, 468, 471, 417 and 511 of the Indian Penal Code. The petitioners had entered appearance before the court below and filed a petition under section 245(2) of the Code of Criminal Procedure seeking discharge, which the court below dismissed by annexure "K" order. The case is pending trial. Petitioners Nos. 4 to 6 earlier filed Criminal Miscellaneous Case No. 882 of 1988 under section 482 of the Code of Criminal Procedure to quash the proceedings in the case which was withdrawn and dismissed by this court by order dated July 20, 1989. The first petitioner is a company registered under the Indian Companies Act. The second and third petitioners are the managing directors. Petitioners ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication in respect of certain aspects of the return. The seventh petitioner in his reply dated January 21, 1987, gave the details as called for. He also furnished certain annexures along with his letter giving particulars of certain machinery and other information required by the respondent. These were only known to the seventh petitioner and not to others. While the respondent was seized of the matter, the petitioners realised that the entire proceedings were erroneous in so far as the first petitioner had not filed a valid Income-tax return. The respondent proceeded with the assessment on the basis of the invalid return, which was signed, verified and filed by the seventh petitioner. Purportedly acting under section 133A of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s declared. This was the only valid return filed by the first petitioner. It was pleaded that the respondent could act upon that return, which was received by him on March 11, 1987. But, then, summons was received by the second petitioner requiring his attendance on March 16, 1987. The account books of the first petitioner contained certain credit entries totalling Rs. 2,00,000 in the names of nine persons. Those credit entries were found in the books of the first petitioner from the year 1980. Interest was credited on these amounts by the company. But, there was no payment of interest to the respective parties. The company was not aware of the source of the said funds, but had credited the amount in the names of the parties as per the dire ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce for levy of penalty was rejected and the respondent levied a penalty on the first petitioner by annexure "E" order dated July 28, 1987. An appeal was filed against the said order before the Commissioner of Income-tax (Appeals), Kochi, who by his order dated March 14, 1989, confirmed the levy by annexure "F" order, against which the first petitioner filed an appeal before the Income-tax Appellate Tribunal. But then the respondent levied the penalty and an appeal was also filed against the said levy before the Commissioner of Income-tax (Appeals). While so, the respondent filed annexure "G" complaint, before the Magistrate. In the appeal filed by the first petitioner before the Tribunal, it was held that the return filed by the seventh pet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rumal, First ITO [1984] 149 ITR 696 (SC) that : "A mere expectation of success in some proceeding in appeal or reference under the Act cannot come in the way of the institution of the criminal proceedings under section 276C and section 277 of the Act. In the criminal case all the ingredients of the offence in question have to be established in order to secure the conviction of the accused. The criminal court, no doubt, has to give due regard to the result of any proceeding under the Act having a bearing on the question in issue and in an appropriate case it may drop the proceedings in the light of an order passed under the Act. It does not, however, mean that the result of a proceeding under the Act would be binding on the criminal court. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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