K.C. PALANISWAMY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) IN this petition under s. 482 of the Code of Criminal Procedure, 1973 ('Cr.PC') two of the accused persons in a criminal complaint, CC No. 444 of 2005 titled Kamal Khanna vs. Sidharth Ray & Ors. pending in the Court of the learned Metropolitan Magistrate ('MM'), New Delhi seek the quashing of the said complaint and all proceedings consequent thereto. The two petitioners are K.C. Palaniswamy and R. Karunanithi. The petitions by two other accused, R. Athappan cause title of the present case accordingly reflects this change.

(2.) THE aforementioned complaint was filed by Kamal Khanna, ITO, Ward 49(4), New Delhi against Data Access (India) Ltd. ('company') [arrayed as accused No. 16] and 16 other persons who were described as directors or senior officers of the said company. This complaint was filed under s. 278B r/w s. 279 of the IT Act, 1961 (IT Act) for the financial years 2003 -04 and 2004 -05. The allegation in the complaint was that a survey operation under s. 133A IT Act was carried out 2003 -04 onwards were examined. It was found that for the financial year 2003 -04, the company had deducted tax at source under several heads, but had not deposited it with the Government Treasury. The company was treated as the demand of Rs. 11,69,800 (TDS Rs. 9,41,18,904 plus interest Rs. 75,60,381)(sic) was created for the financial year for the subsequent years were still stated to be under progress.

(3.) 2004 the company replied as under : liability is Rs. 6,76,69,182 and the total liability is Rs. 15,38,36,388.