KINGFISHER AIRLINES LTD Vs. INCOME TAX DEPARTMENT

JUDGEMENT

(1.) In these three petitions the petitioners have prayed for quashing the proceedings in C.C. No. 49/2013, 77/2013 and 78/2013 on the file of Special Court (Economic Offences ), Bangalore City.

(2.) The parties are same in all the three petitions. The respondent filed three cases before the Economic Offences Court against the petitioners for the financial years 2009-10, 2010-11 and 2011-12 for the offences punishable under Section 276-B read with Section 278-B of Income Tax Act.

(3.) Petitioner No. 1 is a registered company engaged in the business of operating passenger air lines in India. Petitioner No. 2 is the Chairman and Managing Director of petitioner No. 1 company responding for the day-to-day business of the company. On 18.03.2011 respondent Income Tax Department conducted a survey on the premises of petitioner No. 1 under Section 133-A of the Income Tax Act (for short 'the I.T. Act ). During the course of survey the respondent department noticed from the records available in the premises of petitioner No. 1 that they have deducted tax at source and failed to remit the same to the Government account for the financial years 2009-10, 2010-11 and 2011-12 to the tune of Rs.400,56,08,659/- (Four hundred crores fifty six lakhs eight thousand six hundred fifty nine only). During the course of verification of the records, at the time of survey and in the subsequent proceedings after the survey it was detected that the petitioner No. 1 company had deducted TDS on various payments and failed to remit the same to the Government accounts. Petitioner No. 1 company, its principal officer and the authorized representatives admitted the liability of TDS and failed to pay the same.