TMI Blog2016 (4) TMI 220X X X X Extracts X X X X X X X X Extracts X X X X ..... ffences under Sections 276C(1) and 277 of the Income Tax Act, 1961. The petitioner appeared before the Magistrate, the evidence has commenced. If at all the petitioner has to establish his innocence during the course of the trial. Therefore, it cannot be said that the continuation of the proceedings would amount to abuse of process of the Court. - Criminal Petition No. 5714/2015 - - - Dated:- 22-3-2016 - Pradeep D. Waingankar, J. For the Petitioner : Sri A H Bhagavan, Adv For the Respondents : Sri Jeevan Neelargi, Adv ORDER Petitioner who is the accused in C.C.No.339/2014 on the file of the Special Court (Economic Offences), Bangalore has filed this petition to quash the proceedings initiated against him. 2. The As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12, the petitioner had earned income by way of interest on the fixed deposit amounting to ₹ 68,21,469/-. On the basis of the said information, the returns of income filed by the petitioner were examined by the Assessing Officer and it was confirmed that the petitioner had willfully did not disclose the fixed deposit of ₹ 9.62 Crores and the income earned on it by way of interest. As such, a notice under Section 148 of the Income Tax Act came to be issued to the petitioner for reopening the assessment under Section 147. He was also issued with summons under Section 131 of the Income Tax Act. The petitioner appeared before the authority. The Assessing Officer recorded the statement of the petitioner. The Assessing Officer con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Crores and interest earned from the fixed deposit and paid the tax, thus he has not committed any offence muchless the offences under Sections 276C(1) and 277 of the Income Tax Act. The learned counsel would also submit that there is a provision in the Income Tax Act which provides for compounding of the offences. Since the petitioner filed revised income tax returns by disclosing the fixed deposits and paid the income tax to be paid under the fixed deposits, the proceedings initiated against him are liable to be quashed. 5. Sri. Jeevan Neelargi, Standing counsel for the Income Tax Department, on the other hand, would submit that it is impossible to imagine that the petitioner was not aware of the fixed deposit of ₹ 9.62 Crores mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not aware of fixed deposit of ₹ 9.62 Crores made by him in various branches of Tumkur Grain Merchant Co-Operative Bank Limited at Bangalore or for that matter he had no intention or motive to evade tax. The modus operandi in taking the fixed deposit receipts by showing his three different names also speaks his culpable mental state. There is presumption under Section 278E of the Act as to culpable mental state on the part of the petitioner while doing so though it is a defence for the petitioner/accused to prove the fact that he had no such mental state which includes intention, motive or knowledge. He cannot say that he had no knowledge about the fixed deposits of ₹ 9 crores and odd for filing returns three years. He cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when the authorities came to know about the concealment and the authorities issued notice the petitioner filed revised returns and paid the tax. Had it not been detected by the income tax authorities, the said income would not have come to limelight. 9. Be that as it may, the Magistrate has taken cognizance for the offences under Sections 276C(1) and 277 of the Income Tax Act, 1961. The petitioner appeared before the Magistrate, the evidence has commenced. If at all the petitioner has to establish his innocence during the course of the trial. Therefore, it cannot be said that the continuation of the proceedings would amount to abuse of process of the Court. Accordingly, the petition is dismissed. In view of disposal of the petition ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
