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TMI Blog2021 (7) TMI 960X X X X Extracts X X X X X X X X Extracts X X X X ..... 5, 466, 468 and 471 read with 120-B of IPC. 2. Heard Sri A. Ramesh, learned senior counsel, representing M/s. Pillix Law Firm, for the petitioner, learned Assistant Public Prosecutor and Sri B. Narasimha Sharma, learned counsel for 2nd respondent and perused the record. 3. As per the charge sheet, the allegations against the petitioner are as follows:- i) 2nd respondent is an entity registered with Income Tax Department under Section 80(G) and Section 12AA of the Income Tax Act, 1961 (for short, 'the Act'). Donations made to this firm will be entitled to 50% tax exemption. The petitioner herein/A.11, who has donated an amount of Rs. 50,00,000/- during the financial year 2015-16, claimed tax exemptions through Income Tax Returns (ITRs) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Exports Private Limited, to which the petitioner herein is the Managing Director as accused. According to the 2nd respondent, donations were made by the said company and not by the petitioner herein in his individual capacity. Therefore, in the absence of any specific allegation against the petitioner herein, he is not vicariously liable for any offence. 5. Learned Magistrate has mechanically took cognizance of the offences against the petitioner herein by putting rubber stamp. The role played by the petitioner herein is also not explained in the charge sheet by the Investigating Officer. He has placed reliance on the principle laid down by the then High Court of Andhra Pradesh, reported in TGL Groundnut Corporation Vs. The Agricultural ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... alendar Case. Instead of doing so, he has filed the present Criminal Petition to quash the proceedings in C.C.No.8410 of 2020. With the said submissions, he sought to dismiss the present petition. 7. In view of the above stated rival submission, it is not in dispute that the petitioner herein has donated an amount of Rs. 50,00,000/- on 24.03.2016 i.e. during the financial year 2015-16 and claimed tax exemption through ITRs for Rs. 87,50,000/- by submitting certificate under Section 35(i)(ii) of IT Act for the assessment years 2016-17. According to the 2nd respondent, it is a fake certificate. According to the petitioner, it is a genuine certificate. Therefore, it is a triable issue. 8. The petitioner herein has filed returns on 30.11.2016 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egation that the action of the petitioner is well planned afterthought rather than bona fide mistake which is being claimed by the petitioner herein. Thus, the petitioner herein claimed advantage of Rs. 87,50,000/- in his original returns under Section 35(i)(ii) of the I.T.Act. 10. Thus, the above said discussion would reveal that, prima facie, there are serious allegations against the petitioner herein. There are several triable issues. The total tax advantage derived was around Rs. 22.43 Crores which would have accrued to the Government. Thus, Government is deprived to the said extent. It is loss to public exchequer. The petitioner has not voluntarily forgone the claim of exemption claimed on the basis of false donation certificate recei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spell out ingredients of a criminal offence or not. The Court has to consider whether complaint discloses that prima facie, offences that were alleged against Respondents. Correctness or otherwise of said allegations had to be decided only in trial. At initial stage of issuance of process, it was not open to Courts to stifle proceedings by entering into merits of the contentions made on behalf of Accused. Criminal complaints could not be quashed only on ground that, allegations made therein appear to be of a civil nature. If ingredients of offence alleged against Accused were prima facie made out in complaint, criminal proceeding shall not be interdicted. 12. In Skoda Auto Volkswagen India Private Limited Vs. The State of Uttar Pradesh an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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