TMI Blog2022 (6) TMI 927X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs each to a political party but they have not declared the same to the Registrar of the Company as per Section 182 of the Companies Act. Thereby, there is a violation of Sub-section 3 of Section 182 of the Companies Act, whereas the petitioner though admitted regarding donation given to a political party i.e., Aam Aadmi Party (AAP) and it is alleged that they declared the same in the income tax returns in profit and loss account, assets and liabilities statement and in the information sent to the Registrar of Companies and in the format, they have mentioned as miscellaneous expenditure which includes the donations. The expenditure was offered on the show cause notice issued by the respondent, therefore, it is contended that there is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts : Anupama Hegde, CGSC ORDER This petition filed by the petitioner-accused Nos. 1 and 2 under Section 482 of Cr.P.C. for quashing the criminal proceedings and taking cognizance against the petitioner in C.C. No. 135/2019 pending on the file of Special Court of Economic Offences, Bengaluru for the offences punishable under Sections 182(3) and (4) of the Companies Act, 2013. 2. Heard the learned counsel for the petitioner and learned Standing counsel for the respondent. 3. The case of the prosecution before the trial Court is that a complaint under Section 200 of Cr.P.C. filed against the petitioner for the violation of Sub Section (3) read with Sub Section (4) of Section 182 of the Companies Act alleging that the accused-com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y filing Crl.R.P. No. 447/2019 which came to be dismissed. Hence, the petitioner is before this Court. 4. Learned counsel for the petitioner has contended that the petitioner-company has very much disclosed in its profit and loss account about the political contribution in the name of donations and there is no prescribed column in the format. It has very much disclosed the contribution to the Income Tax Authorities and claimed the exemption. Even otherwise, the petitioner gave explanation as to when the notice was issued to the respondent, in spite of it, a false complaint has been filed against the petitioner is nothing but abuse of process of law and hence, prayed for quashing the criminal proceedings. 5. In support of his contentio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 182 of the Companies Act, whereas the petitioner though admitted regarding donation given to a political party i.e., Aam Aadmi Party (AAP) and it is alleged that they declared the same in the income tax returns in profit and loss account, assets and liabilities statement and in the information sent to the Registrar of Companies and in the format, they have mentioned as miscellaneous expenditure which includes the donations. The expenditure was offered on the show cause notice issued by the respondent, therefore, it is contended that there is no offence committed for violation of Section 182 of the Companies Act. The learned counsel for the petitioner has produced the ITR for the assessment year 2017-2018 where at page No. 44, it has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... did not accept the explanation. Hence, the prosecution has been launched. 8. Now coming to the show cause notice issued by the respondent on 07.12.2018 for giving explanation and intimating the name of political party about the contribution of Rs. 10.00 lakhs in the year 2016-2017. The petitioner has also produced Annexure-G where a resolution was passed for contributing to the political party i.e., AAP as per the minutes of the meeting dated 30.09.2016. A detailed explanation is given to the respondent regarding resolution, payment and declaration in the profit and loss account in the head of donations. Therefore, it is contended that there is no violation of Section 182(3) of Companies Act. Once the company has disclosed the political ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he material facts and circumstances, it indicates that though under the law, the declaration has to be made separately but as rightly pointed out by the learned counsel for the respondents in the reply also, it has been specifically mentioned that in the financial statement, the company has inadvertently missed the separate disclosure as per Section 182(3) of the Act. But on factual matrix, if it is taken into consideration, the said amount of Rs. 15,00,000/- has been paid to Aam Ada mi party through cheque that too, account payee for which, the declaration has also been made. 12. Taking into consideration of the object and spirit of law, it indicates that the main object of law is that such donations, which are going to be given in la ..... X X X X Extracts X X X X X X X X Extracts X X X X
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