UNION OF INDIA Vs. CHHABHAIYA

JUDGEMENT

(1.) THE judgments impugned in these appeals filed under section 378 of the Code of Criminal Procedure, 1973, are rendered by the Additional Chief Judicial Magistrate (Economic Offence), Indore, in Criminal Cases Nos. 36 of 1988, 39 of 1988 and 95 of 1990, acquitting accused -respondents of the charges under sections 276DD and 278DD read with section 269SS of the Income Tax Act, 1961 (hereinafter referred to as 'the Act').

(2.) THE prosecutions in question were launched in the years 1988 and 1990. The punishing section 276DD was omitted by the amendment Act of 1987 with effect from 1 -4 -1989. It will be thus seen that the prosecution in Criminal Case No. 1053 of 1992 was launched after the said deletion while the other two cases were pending when the said amendment Act came into force. In all the three cases the punishing provision section 276DD was not on the book of the statute when the impugned judgments were passed. In the amendment Act there was no saving clause to protect the pending prosecutions. Section 278B is merely an enabling section to create vicarious liability on companies of the offences committed by the directors. This section by itself creates no offence but makes the company liable for the offence punishable under section 276DD.

(3.) ON the merits also I find no substance in these appeals. These appeals thus fail and are dismissed. This judgment be retained in Criminal Appeal No. 541 of 1992 and a copy be placed in the record of other connected appeals.