TMI Blog1978 (6) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO, Circle-2, Salem, filed a complaint against the accused under ss. 120-B, 193 and 196 read with s. 109 of the IPC and s. 277 and s. 278 of the I.T. Act, 1961, alleging that accused 2 to 9 conspired together to fabricate the day book and ledger of accused 1 with a view to suppress genuine evidence in the course of the income-tax proceedings. The ITO also contended that accused 2 to 9 fabricated documents and used them as genuine documents and gave false statements before the ITO knowing them to be false and, in this act, respondent 9 abetted the offence while submitting the return for the year 1965-66. Witnesses were examined on behalf of the prosecution. P.W. 1 was working as ITO, Circle No. 2, Salem-4, from July 1, 1965, to August 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no evidence that accused 4 to 8 looked after the management of the company or the accounts. Accused 2 to 8 contended that whatever was given for their share was included in the return and they did not verify the accounts and the accounts were signed by the auditor. The learned Magistrate as stated above after scrutinizing the evidence, both oral and documentary, found that the prosecution has not proved the case against accused 4 to 8 since they had no knowledge about the fabrications in the accounts. He also found that there is no evidence that the accused conspired together to commit the offence in order to make them liable under s. 120-B of the IPC for conspiracy. Accused 9, the accountant, admitted that he committed the mistake. Accused ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e accused who are partners of accused 1 (firm) were acquitted. This appeal is preferred by the department (income-tax) for enhancement of the sentence imposed on the respondents-accused. The learned counsel appearing for the appellant brought to my notice ss. 277 and 278 of the I.T. Act, 1961. Section 277 deals with submission of false statement in the declaration to the income-tax department and the punishment that should be awarded. Section 278 deals with the abetment of false return, etc., and it also deals with the term of punishment. The learned counsel for the appellant also brought to my notice s. 377(2), Cr. PC whereunder he is empowered to prefer an appeal to this court on the question of sentence, if it is inadequate. The co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the sentence, it is necessary that the nature of the offence, the circumstances of its commission and also the age and character of the offender have to be considered, for the courts and the law are functionally bodyguards of the people against bumptious power, official or other. In this case, the accused were already awarded sentence ; in other words, the income-tax department imposed on accused 1 a penalty of Rs. 13,000 for keeping irregular accounts and the department not content with this, has also taken criminal proceedings against the accused, and the learned Magistrate has awarded sentence on the firm (accused 1) and also on accused 2, 3 and 9. The learned Magistrate after considering the evidence and perusing the documents in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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