HINDUSTAN CARBIDE PVT. LTD. Vs. O.P. SALUJA

JUDGEMENT

(1.) BOTH these petitions have been filed by the petitioners under Section 482 of the Code of Criminal Procedure (Cr.P.C.) for quashing of criminal complaints filed against them separately under Section 276(c)(1), Section 277 read with Section 278B of the Income Tax Act, 1961 before the ACMM, Delhi where charges were also framed against both of them. According to the petitioners after the adjudication of departmental proceedings finally in which they have been exonerated of the allegations made against them on the basis of which departmental proceedings were initiated, the continuation of the complaint becomes an abuse of the process of Court and as such the complaints which are pending in the Court of ACMM including the charges framed against them are liable to be set aside by exercising powers vested in this Court under Section 482 Cr.P.C.

(2.) AFTER the orders were passed in departmental proceedings by the Income Tax Appellate Tribunal in their favour both the petitioners moved application for dismissing of a complaint and discharging them under Section 245(2) of the Cr.P.C. However, the application so filed by both of them was dismissed by the ACMM by the order dated 19.03.2001 and 13.11.2000 respectively. It is thereafter the petitioners have approached this Court by way of the present petition.

(3.) ON the other hand, the respondents have contested the submissions made on behalf of the petitioners. They have relied upon the provisions contained under Section 278E of the Income Tax Act which was introduced in the Act in 1986. It is submitted that in view of the said provision under the Act the petitioners who tried to conceal their income initially are not entitled to any benefit of departmental adjudication and are required to prove their innocence before the ACMM concerned. For the sake of reference provisions contained under Section 278E are reproduced hereunder: