KANHAIYALAL DEEPCHAND JAIN Vs. UNION OF INDIA

JUDGEMENT

(1.) THE unsuccessful petitioners (accused) have filed this petition under Section 482 of the Criminal Procedure Code, for quashing of the proceedings of Criminal Case No. 10 of 1986 of the court of the ACJM (Economic Offences), Indore.

(2.) BRIEFLY stated the facts of the case are that the non-applicant, Income-tax Officer, "a" Ward, Khandwa, filed a complaint in the Court of Additional Chief Judicial Magistrate (Economic Offences), Indore, against the petitioners and the deceased partners of the firm, Kanhaiyalal Deepchand Jain, alleging commission of an offence punishable under Section 276e/ 278b of the Income-tax Act, 1961. It is alleged that during the course of assessment proceedings for the year 1983-84 of applicant No. 1, the asses-see-firm, it was found that the firm repaid the loan amount in cash, i. e. , otherwise than by account payee cheques or the draft, respectively, to Smt. Basanti Bai wife of Kanhaiyalal ; Rajeshkumar Roopchand, Rs. 1,000 and Rs. 10,200 when the balance in their account was exceeding Rs. 10,000.

(3.) THAT after recording the evidence under Section 200 of the Criminal Procedure Code, a criminal case was registered against the present petitioners and the deceased partners, Shri Kanhaiyalal Jain and Deepchand Jain, of the applicants/firm under Section 276e/278b of the Income-tax Act, 1961. The applicants raised objections before the trial court and prayed for quashment of the proceedings of the said criminal case on various grounds but the learned trial court rejected the objection and framed charges against the applicants for the offence punishable under Section 276e/278b of the Income-tax Act, 1961. The revision petition filed by the applicants against the order of the trial court framing charges against them, was dismissed by the ASJ, Indore, by the impugned order. Aggrieved, the petitioners have filed this petition under Section 482 of the Criminal Procedure Code, for quashment of the proceedings of the aforesaid criminal case registered against the applicants.