J TEWARI Vs. UNION OF INDIA

JUDGEMENT

(1.) Criminal Revision No. 1287 of 1994 is directed against an order dated 21.3.1994 passed by a Metropolitan Magistrate in case no. 0/992/90 under section 276B, and 276B read with 278B on the Income Tax Act, 1961, whereby the learned Magistrate directed that the case be proceeded against the Secretary-accused petitioner so. 2 only as the case did not lie against accused no. 1 Company a juristic person.

(2.) Deputy Commissioner of Income Tax, Special Range 15, Calcutta filed a petition of complaint against (1) M/s. Chem Crown India Limited and (2) J. Tewari, the Secretary of the Company, in which it was alleged that the Company filed its return of income on 31.7.1987 for the Assessment Year 1987-88 and while scrutinizing the details filed by the Company along with the return it was observed from a perusal of Annexure-XVI of the Tax Audit Report dated 28.7.1987 that a tax of Rs. 85,045.00 was deducted under section 194A of the Income Tax Act, 1961 from the interest paid to the loan creditor viz., M/s. IND Mark Services (P) Ltd., on 31.3.1987, but the tax so deducted appears not to have been deposited to Central Government Account within the statutory prescribed time i.e. within 31.5.1987 as provided under Section 200 of the Income Tax Act, 1961 read with Rule-30 of the Income Tax Rules, 1962.

(3.) It is, therefore, alleged that the Company amused no. 1 having failed to pay the tax deducted to the credit of the Central Government, it committed an offence punishable under Section 276B of the Income Tax Act, 1961 and the accused no. 2 being in-charge of and responsible for the conduct of the business of Company during the material time has committed an offence punishable under Section 276B read with section 278B of the Income Tax Act, 1961 and he has also been treated as principal officer of the company by issuing notice on him.