MODERN AGRICO INDUSTRIES Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS revision has been preferred by the petitioners against the judgment and order of conviction dated April 17, 1995, passed by the XIIIth Additional Sessions Judge, Indore, in Criminal Appeal No. 78 of 1993, whereby the conviction of the petitioners under Section 276E read with Section 278B of the Income-tax Act, 1961 (for brevity, hereinafter the "Act"), has been maintained and they have been imposed a fine of Rs. 5,000 each with imprisonment till rising of the court.

(2.) THE respondent herein filed a complaint under Section 276E read with Section 278B of the Act against the petitioners along with one Rajeev Puri and partners on the ground that they had made the payment of loan to the tune of Rs. 1,35,000 to one Marvellous Fabricators, during the assessment year 1985-86 in cash, whereas, the same should have been made either by account payee cheque or by a demand draft. According to them this was in contravention of Section 269T of the Act.

(3.) IN this view of the matter, the judgments of the two courts below are hereby set aside and quashed. The amount of fine is directed to be refunded back to the petitioners on its due verification. The revision is allowed to the extent mentioned above.