S.ARPUTHARA Vs. DEPUTY COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Since, the issue involved in all these criminal original petitions are similar in nature, they are disposed of by way of this Common order.

(2.) These petitions have been filed seeking quashment of the private complaint proceedings made in C.C.Nos.124 to 136 of 2018 and 278 to 284 of 2018 pending on the file of the Judicial Magistrate No.III, Coimbatore.

(3.) The respondent filed a complaint under Sec. 200 of Cr.P.C., before the trial Court alleging that petitioner is an assessee and he is in the business of Real Estate, Motor Car Agency (Skoda), Construction and Finance. He is a Proprietor /Director of M/s. Arputharaj Associates, M/s. Millenium Motors, M/s. SGA Cars Pvt.Ltd., The search was conducted in the residence of the petitioner on 26/2/2015 as contemplated under Sec. 132 of IT Act. As a result of the search, various undisclosed income and investments made by the petitioner were found. Thereafter, petitioner was issued notice under Sec. 142(1) of Income Tax Act on 18/3/2016 to file the return of income for the Assessment Year 2015- 2016 within 15 days from the date of service of the notice. Accordingly, petitioner had filed return of his income for the Assessment Year 2015 to 2016 on 29/2/2016 disclosing an income of Rs.92,45,237.00 and assessment was completed under Sec. 143(3)of Income Tax Act on 30/12/2016. However, petitioner did not make any payment as per the demand and filed an appeal before the Commissioner of Income Tax. Therefore, it is the contravention of the provision under Sec. 276 C (2) of the Income Tax Act for the willful attempt to evade the payment of tax and the penalty under Income Tax Act. Therefore, respondent initiated prosecution under Sec. 200 and 190(1)(1) of Cr.P.C., for the offence under Sec. 276 C (2) of Income Tax Act, 1961 read with Sec. 153(A) of the Income Tax Act, 1961. Respondent also initiated prosecution for the offences under Sec. 276 C C of the Income Tax Act, 1961 read with Sec. 153(A) of the Income Tax Act, 1961 for the Assessment Year 2013 to 2014. Petitioner was served with notice under Sec. 153(A) to file the return of Income Tax. However, petitioner submitted a letter dtd. 4/8/2015 stating that, he was not able to file the return due to the death of his Accountant and requested for extension of time to file the return of Income. Thereafter, the Office of the Assistant Commissioner of Income Tax issued letter dtd. 11/8/2015 the petitioner, thereby directed the petitioner to appear on 17/8/2015. However, petitioner did not file return of income, even after receipt of copies of the seized impounded materials. Thereafter, he was issued notice under Sec. 142(1) of Income Tax, thereby, petitioner was called upon to submit the return of income. However, there was no response and as such, on 1/4/2016, a notice under Sec. 274 read with Sec. 271 (F) of Income Tax Act was issued to the petitioner to show cause why penalty under Sec. 271(F) of Income Tax Act should not be levied. Further, petitioner was also directed to appear before the Assessing Officer. Accordingly, penalty was imposed for nonfiling of income tax, as per the show cause notice issued show cause notices under Sec. 153 A (1)(a) of Income Tax Act. Thereafter, petitioner was issued under Sec. 276 C C of Income Tax Act. Finally, petitioner filed return of his income after a period of eleven months from the date of issuance of notice under Sec. 153 A (1) (a) of Income Tax Act. Thus, it is a contravention to the offence under Sec. 276 C C and therefore, respondent initiated prosecution for the offence under Sec. 276 C C of Income Tax Act. Respondent also initiated prosecution as against the petition for non filing return of income tax for certain period. The respondent made search and found various incriminating documents with regard to investments made in movable/immovable properties and other real estate transactions. On the basis of the documents, petitioner was directed to file the return of income. Accordingly, demand was raised and it was not complied with by the petitioner. Therefore, there was huge arrears of income tax and it is a contravention under Sec. 276 C (1) of the Income Tax, Act.