1992 (1) TMI 63

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..... ors. Though such creditors are different persons in each complaint, yet the incriminating allegations are the same. As all the complaints pertain to the commission of one and the same offence pertaining to the assessment year 1980-81, the trial court, vide its order dated March 3, 1984, consolidated all the complaints and it was ordered that the evidence be recorded in the complaint No. 141 dated March 24, 1983, against the present accused. After putting in appearance in the court, the accused moved an application under section 245(2) of the Criminal Procedure Code to the effect that, on the facts disclosed in the complaint, section 194A of the said Act is not attracted in the case and, on similar allegations, revision was also dismisse .....

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..... ook the view that, as interest had not been paid to the creditor by cheque, draft or cash, the crediting of the interest in the payee's account would only mean the reflecting of interest by the assessee following the mercantile system of accounting by debiting the interest payable to the creditor in its books in the interest payable account instead of the personal account of the creditors. In other words, the trial court was of the view that it was not credit of such income to the account of the payee and the procedure adopted by the assessee by crediting the income in the interest account of the payee would be a valid transaction under the mercantile system of accounting and such a mode is a valid mode of payment within the words "or any o .....

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..... is incorrect and untenable in law. In view of the discussion made above, there is no option left with this court but to accept this appeal and to set aside the impugned judgment. As the trial court has not decided the case on the merits and has discharged the accused while deciding the non-maintainability of the complaint as per the allegations contained therein in view of section 194A, the trial court is directed to decide all the three cases afresh on the merits in accordance with law. As the matter is old, the disposal by the trial court is expected to be expedited. The parties, through their counsel are directed to appear before the trial court on February 19, 1992. The appeal is allowed to the extent indicated above. - - TaxTMI - .....

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