UNION OF INDIA Vs. GOPAL ENGINEERING WORKS

JUDGEMENT

(1.) THE Union of India, represented by the Second Income-tax Officer, City Circle 11. Madras-34, has preferred these revisions under sections 397 and 401, Criminal Procedure Code, for setting aside the order passed by the Additional Chief Metropolitan Magistrate (Economic Offences-II), Egmore, Madras, in C. C. Nos. 232, 231 and 233 of 1984, discharging the respondents of offences under section 120B read with sections 193 and 196, Indian Penal Code, on the ground that the above sections will not apply since the Income-tax Officer had not been declared to be a court under section 195(3), Criminal Procedure Code.

(2.) FACTS necessary for the disposal of the revisions are briefly as follows : The first respondent is a registered firm, carrying on the business in manufacturing, purchasing and selling drums and kegs used in painting industry and other materials and had been assessed to income-tax. The other respondents are its partners. For the years 1976-77, 1977-78 and 1978-79, the first respondent was assessed to income-tax on the basis of the returns filed and the account books produced before the Income-tax Officer. Later, on February 14, 1979, during a search of the premises of the first respondent, several incriminating accounts and documents were seized and a perusal of the same showed that the returns submitted earlier were false and the account books produced in support of the returns were also false. Purchase figures had been inflated and the alleged purchasers were found to be bogus. The original purchase bills produced at the time of the assessment were found to contain interpolations when compared with the documents seized during the search. After the search, statements were obtained and the second respondent admitted that the account books originally produced at the time of assessment were all false and had been prepared for the purpose of income-tax assessment to reduce the total income and thereby evade income-tax. Complaints were filed before the trial court for the three assessment years which were numbered as follows :

(3.) THE question that arises for determination is whether the order of the court below quashing the charges under sections 193 and 196 of the Indian Penal Code for the reasons given therein could be sustained ?