UNION OF INDIA Vs. KALPANA DAL MILLS

JUDGEMENT

(1.) THE appellant/complainant had filed the appeal under Section 378 of the Cr. PC for setting aside the acquittal in complaint under Section 276 (E)/278 (B) of the Income Tax Act, 1961 vide judgment and order dated 23-8-1993 by Additional Chief Judicial Magistrate, Indore in Criminal Case No. 5/90.

(2.) THE case of the complainant is that Shri N. K. Vijayvargiya was posted as Income Tax Officer of Ward No. 2 (5) at Indore and he was the public servant and he has filed the complaint after taking the sanction under Section 279 of the Income Tax Act on 22-1-1990. That accused No. 1 M/s. Kalpana Dal Mill was registered partnership firm and accused Nos. 2 to 5 are the partners of the firm and they were responsible to the firm and incharge of conducting the business of the firm. That firm M/s. Kalpana Dal Mill has given the amount of Rs. 30, ()00/- in cash on 26-11-83 to Surendra Kumar and Tarun Kumar Modi. That on 9-12-83 the amount of Rs. 31,000/- that on 11-11-83 amount of Rs. 37,000/- and on 9-12-83 the amount of Rs. 26,000/- was paid to M/s SAT Modi. That according to the provisions of Section 269 (T) of the Income Tax Act it was incumbent on the firm M/s Kalpana Dal Mills to make the payment either by the account payee cheque or by the account payee bank draft. That on account of the infringement of the provisions of the Income Tax Act the accused persons are liable to be convicted for the offence punishable under Section 276 (E) of the Income Tax Act.

(3.) THE accused persons have abjured the guilt and pleaded that they have not committed the violation of the provisions of Section 269 (T) of the Income Tax Act. That the loan was not taken for the limited period and it was agreed that the amount would be paid or returned after the notice. The accused has examined Surendra Kumar in defence.