DONDE R M ITO Vs. MUKUNDRAI KUBERDAS KATAKIA

JUDGEMENT

(1.) THESE are companion appeals directed against a like number of verdicts of acquittal flowing from complaints lodged against respondent No. 1 ascribing to him the commission of an offence punishable under S. 276 B of the IT Act, 1961 ("the Act").

(2.) RESPONDENT No. 1, also referred to as the accused, is the managing partner of a firm doing business in the name and style of Universal Export and Import Agency. This firm has three sub concerns and the profits and losses sustained by the said concerns are brought into the account of the parent firm, viz., the Universal Export and Import Agency. While scrutinising the account books of the Universal Export and Import Agency, it was noticed that accounts of certain parties (creditors) had been credited with interest, each such entry corresponding to a debit entry against the cash balance of the Universal Export and Import Agency. The firm maintained its books in accordance with the mercantile system. The aforementioned entries spanned the accounting years 1966 67 to 1972 73. Allegedly, after having paid interest which was not "interest on securities", the firm in effect, accused should have submitted the return prescribed by S. 285 of the Act. This return requires a specification of the names and addresses of the creditors together with the details of sums paid to them. No such returns were submitted and, therefore, the complaints for six annual omissions said to amount to offences punishable under S. 276 B of the Act have been filed.

(3.) THE Addl. Chief Metropolitan Magistrate having sustained the defence, the complainant appellant has come up in appeal. Having regard to the submissions made at the Bar, the points for decision would be