ASHVINKUMAR VADILAL PATEL Vs. S RAJGURI

JUDGEMENT

(1.) In these two revision applications the applicant-original accused has challenged the order of the learned Metropolitan Magistrate refusing to stay the criminal prosecution and has relied upon the circumstance that he has already made an application to the Settlement Commission under sec. 245(H) of the Income Tax Act for granting immunity from prosecution. That section reads as follows: 245 (h)(i) The Settlement Commission may if it is satisfied that any person who made the application for settlement under sec. 245C has co-operated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his income and the manner in which such income has been derived grant to such person subject to such conditions as it may think fit to impose immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force and also (either wholly or in part) from the imposition of any penalty under this Act with respect to the case covered by the settlement.

(2.) In Criminal Case No. 580 of 1985 the learned Chief Metropolitan Magistrate has passed the following order:

(3.) Sec. 245(H) includes immunity not only for offences punishable under the Income Tax Act but also for offences under the Indian Penal Code. But the basic question still remains as to whether the prosecution is required to be stayed merely because an application under sec. 245(H) is made and is pending. Till such application is granted there is no immunity and merely because an application is made about the merits of which there is nothing before the Court and regarding the merits of which the Criminal Court has no jurisdiction the prosecution cannot be stayed. Moreover the power to grant immunity is of the Settlement Commission to be exercised sparingly. The Criminal Court cannot grant even temporary immunity by granting stay of prosecution. The learned Counsel for the petitioner has also referred to sec. 245 and submitted that where after the passing of an order of settlement under the said sub-sec. (4) in relation to a case such person is convicted of any offence under Chapter XXII in relation to that case then he shall not be entitled to apply for settlement under sec. 245 in relation to any other matter This provision cannot have any application to the present case. There is no order of settlement no conviction and no offence under Chapter XXII.