BALAKRISHNA Vs. INCOME-TAX OFFICER, ERNAKULAM

JUDGEMENT

(1.) THE main question that arises for consideration and falls for my decision in this case is, whether the Income -tax Officer is Court without the meaning of s. 195(1)(b) of the Criminal Procedure Code. Although this was the main question raised before the Chief Judicial Magistrate Ernakulam, now an additional ground is urged, that the complaint does not disclose any mens rea. No mens rea can be atributed to A -1, a company. It is further submitted that there are no materials in the complaint specifying the individual acts done by the other accuse, nor is the group liability section invoked therein.

(2.) THE facts necessary for disposal of this petition can be briefly stated as follows : - The company filed before the Income -tax Officer, Bombay its returns of income for the assessment year 1967 -68 in respect of the accounting year ended 31 -3 -1967. The return was filed on 31 -12 -1967. During the course of the assessment were produced before the Income Tax Officer, B Ward, Complaint Circle, Ernakulam. In the said book it is alleged, there was a false entry showing a cash receipt of Rs. 30,000 from M/s. K. R. P. Chettiar and Sons, Trichinappally. According to the complaint, no such concern existed.

(3.) THE Income -tax Officer, B ward, Companies Circle, Ernakulam, passed the assessment order without accepting the accounts produced by the Company. Against this assessment order an appeal was filed before the Appellate Assistant Commissioner of Income Tax. After the passing of the assessment order, then B ward Officer who completed the assessment order, was transferred as the officer -incharge of the special circle. While the appeal was pending, the Income Tax Officer, Special Circle, decided to prosecute the company and the directors for offence under Ss. 193 and 196 I.P.C. on the allegation that the documents produced in support of the repayment of Rs. 30,000 to M/s. K.R.P. Chettiar and sons are forged documents since the said concern is a fictitious one invented by the accused for the purpose of making a false entry. The Income tax Officer, Special Circle, obtained the sanction of the commissioner of Income Tax, Kerala, for filing the complaint under s. 279 of the Income Tax Act. The complaint is dated 12th of June, 1974 and the Chief Judicial Magistrate, Ernakulam, took it on file as C.C. No. 104 of 1974.