FOURTH INCOME TAX OFFICER Vs. SRINIVASAN A K

JUDGEMENT

(1.) THESE two appeals are directed by the complainant against the order of acquittal of the accused for the offences under ss. 193 and 196, IPC, and for not awarding the minimum sentence as per law for the offence under ss. 276C and 277 of the IT Act, 1961, in EOCC No. 2222 of 1982 by the Addl. Chief Metropolitan Magistrate (Economic Offences II), Madras. The respondent in both the appeals, who is the accused in the case, was prosecuted by the IT Department under six charges -the first charge is under S. 420 r/w S. 511, IPC; the second charge is under S. 193, IPC, r/w S. 136 of the IT Act, 1961; the third charge is under S. 196, IPC, r/w S. 136 of the IT Act, 1961; the fourth charge is under S. 276C of the IT Act, 1961; the fifth charge is under S. 277 of the IT Act, 1961, and the sixth charge is also under S. 277 of the IT Act, on the allegations that the accused has intentionally fabricated his account books relating to the income -tax asst. yrs. 1976 -77 and 1978 -79 by deliberately suppressing the commission receipt of Rs. 1,05,000 from M/s Greaves Cotton & Co. Ltd. for the asst. year 1976 -77 and falsely showing the same as income for the asst. year 1978 -79 with a view to defraud the exchequer of its legitimate revenue, and deliberately delivered false returns of income and statements of accounts based on the abovesaid fabricated account books and thereby attempting to mislead the ITO and dishonestly inducing him to deliver the assessment orders relating to the above assessment years, computing the total income at a considerably lower figure than that to which he is properly assessable, and acting and relying on the aforesaid fabricated account books and false returns of income and statements for the aforesaid income -tax assessment years. It is further alleged that the accused had intentionally fabricated the account books for the income -tax asst. yrs. 1976 -77 (exhibits P -31, P -32 and P -33) and 1978 -79 in the aforesaid manner with the intention of corruptly using them as genuine evidence in the course of the income -tax assessment proceedings relating to his case for the income -tax asst. yrs. 1976 -77 and 1978 -79 and had wilfully attempted to evade tax, penalty and interest chargeable or imposable within the meaning of S. 276C of the IT Act and, for the aforesaid purposes, have deliberately delivered false returns of income (exhibits P -1 and P -25) and false statements of accounts (exhibits P -2 to P -5 and exhibits P -26 to P -28). In support of the said charges, the prosecution examined PWs 1 to 4, and marked exhibits P -1 to P -58, and, on behalf of the defence, one Gurusami, Fourth ITO, City Circle III, Madras -6, was examined as DW -1 and exhibits D -1 to D - 6 were marked.

(2.) THE case of the complainant, the appellant herein, is that the respondent herein/accused is doing business in the name and style of M/s Rajasekaran & Co., and he is an income -tax assessee. For the year ended 31st March, 1976, he filed the return of his income on 14th July, 1978. The balance sheet and P&L account were also filed along with the return. In the balance sheet, he has shown a sum of Rs. 2,53,498.92 as due to sundry creditors on the liabilities side. In the schedule to the balance sheet for the sundry creditors, a sum of Rs. 1,05,000 was shown as due to M/s Greaves Cotton & Co. Ltd., while actually it was an amount received as commission in June, 1975, and it was not an advance or loan.

(3.) FOUR witnesses were examined on the side of the complainant. PW -1 is the ITO. He has deposed in support of the allegations stated in the complaint. Through him, the IT return, exhibit P -1, received from the accused for the asst. year 1976 -77, exhibit P -3, the statement of accounts signed by Thiru G. Venkatesan, chartered accountant of M/s Venkatesh & Co., exhibit P -2, the trading and P&L account for the year ended 31st March, 1976, exhibit P -4, schedule to balance sheet as on 31st March, 1976, about sundry creditors and sundry debts, exhibit P - 5, statement of total income for the year ending 31st March, 1976 and exhibit P -6, power of attorney in favour of M/s Venkatesh & Co., were marked.