SYED MOHAIN S M Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioners are some of the accused in C C No 12 of 1985 on the file of the Additional Chief Judicial Magistrate (Economic Offences), Ernakulam. The complaint is that the petitioners and five others had committed offences punishable under Sections 277 and 278 of the Income Tax Act, 1961, and Sections 120B, 193, 196, 420 and 109 of the Indian Penal Code, 1860. The Assessing Officer found that the accused were not accounting all their sales and it was also found that the sales were short -credited or in other words, the full consideration was not shown in the sale bills. It was also revealed that inflated figures were shown regarding the expenses under the head "Freight and cooly inwards in the trading and profit and loss account". They are also alleged to have fabricated documents knowing them to be false or not believing them to be true. They had also produced account books for being used in the proceedings before the Income Tax Officer and used them as genuine knowing that they were false and fabricated. The offences mentioned above are alleged to have been committed in these circumstances.

(2.) IT is stated in the petition that the only allegation in the complaint against the partners, viz., accused Nos. 2 to 12, was that they had full knowledge of the acts and manipulations. Accused Nos. 13 and 14 were employees of the firm during the relevant period and accused Nos. 15 to 17 were also employed there.

(3.) HEARD counsel for petitioners.