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TMI Blog1984 (4) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... the offences by A-1 and covered by charges 1 and 2. Charges 5 and 7 were framed against A-2 under ss. 193 and 196 of the Indian Penal Code, 1860, while charges 6 and 8 were framed against A-1 for abetment of commission of the said offences by A-2. The first accused was convicted of the first charge by the learned Special Judge under s. 276C(1)(ii) of the I.T. Act and sentenced to suffer rigorous imprisonment for a term of one year and also to pay a fine of Rs. 2,000, in default to suffer R. I for six months. He was acquitted of all the other charges. The second accused was convicted by the learned Special judge under ss. 193 and 196 of the Indian Penal Code and sentenced to suffer R.I. for a term of one year on each of the counts, the sente ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . For the assessment year 1976-77, the first accused filed a return, Ex. P-1, on September 15, 1976, before the then ITO, Anakapalli, Sri K. K. Viswanatham, showing an income of Rs. 14,308. That return was signed and verified by A-1. Along with the return, A-1 filed Exs. P-2 and P-3, statements of computation of income and profit and loss from the businesses. The return was taken up for enquiry by P. W. 3 on November 10, 1976. The authorised representative of A-1 and A-2 appeared before P.W. 3. A-2 filed Ex. P-4, a list of the books of account before P. W. 3. Among others, the books included Exs. P-7 and P-8, the day book and the ledger maintained by A-2. P. W. 3 directed the then Inspector of Income-tax, Anakapalli, Sri S. Suryanarayana, P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t A-2 was entrusted with the maintenance of the accounts, that he never scrutinised the accounts and that he had no personal knowledge of the impugned entries in the cash book and the ledger. A-2, however, admitted that he made the impugned entries on his own accord and without reference to the first accused. He asserted that all the vouchers produced were genuine and that he made the interpolations to compare favourably with the balance-sheet. P. W. 1 determined the income of A-1 from all sources at Rs. 64,440 which amount included the inflated expenditure of Rs. 31,000. Exhibit P-2 is the order of assessment passed by P. W. 1. Oil appeal, the same was confirmed by the AAC of Income-tax, Visakhapatnam. Exhibit P-29 is the order passed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not denied that the cash book and the ledger containing the impugned entries were maintained only by A-2. It is also not in dispute that the vouchers, Exs. P-9 to P-21, are genuine, though the vouchers were not properly reflected in the cash book and the ledger and the interpolations in the same were made by A-2. It was also very easy for the accused to produce some other vouchers to explain away the interpolations. Be that as it may, the day book and the ledger, Exs. P-7 and P-8, containing the impugned entries were not produced by A-1 either before P. W. I or before P. W. 2. The same were produced by A-2 only. This circumstance by itself is of no assistance to A-1 as it cannot be said that he had no control over Exs. P-7 and P-8. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng set of accounts in the house of his innocent father-in-law and if the same are seized during a raid conducted by the income-tax authorities, can the innocent father-in-law of X be successfully prosecuted under s. 276C(1), clause (ii) read with Explanation (i) of the I.T. Act? The answer to my mind is emphatically in the negative. It is not difficult to visualise that a person can come into possession of books of account containing false entries or statements without knowledge of the same. The requisite mens rea, namely, knowledge on the part of a person of a false entry or statement in any books of account or other documents in his possession or control must be established before he is sought to be visited with the penalty prescribed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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