ASSOCIATED INDUSTRIES Vs. FIRST INCOME TAX OFFICER

JUDGEMENT

(1.) CRL. M.P. No. 617 of 1979 is a petition for quashing the criminal proceedings launched against the petitioners in C.C. No. 5674 of 1976 on the file of the Chief Metropolitan Magistrate, Egmore, Madras, while CRL. M.P.No. 618 of 1979 is a petition to stay the proceedings in the aforesaid criminal case till the disposal of CRL. M.P.No. 617 of 1979.

(2.) THE respondent-ITO laid a complaint before the Chief Metropolitan Magistrate, Egmore, Madras, against the petitioners under s. 195, Cr. PC, and s. 136 of the I.T. Act, alleging offences under s. 120B read with ss. 193 and 196, IPC, under s. 193, IPC, under s. 196 IPC and under ss. 277 and 278 of the I.T. Act, 1961.

(3.) IN Lalji Haridas v. State of Maharashtra , the majority decision of the Supreme Court was that it could not have been the intention of the Legislature in making the offence committed during the course of a proceeding before an ITO more serious without affording a safeguard provided by s. 195(1)(b), Cr. PC, 1898, and that would really carry out the intention of the Legislature in enacting s. 37(4) of the I.T. Act, and where, therefore, an offence under s. 193, IPC, is committed in respect of the proceedings before the ITO, a complaint by that officer is a condition precedent prescribed under s. 195(1)(b),Cr. PC, 1898, before a Magistrate can take cognizance of it.