ALODAS Vs. UNION OF INDIA & ORS

JUDGEMENT

(1.) This revisional application is for quashing of the proceeding being Case No. C/293 of 1993 under Section 276 DD of the Income Tax Act, 1961, pending in the Court of Metropolitan Magistrate, 3rd Court, Calcutta.

(2.) The opposite party No.1 lodged a petition of complaint in the Court of learned Chief Metropolitan Magistrate, Calcutta, alleging commission of an offence under Section 276DD for allegedly taking loan of Rs.14, 500/- from Smt. Nirupama Chowdhury in utter disregard of and in contravention of the provision of Section 269SS of the Income Tax Act, 1961, and thereby committed an offence punishable under Section 276DD of the Income Tax Act. The learned Chief Metropolitan Magistrate took cognizance of the offence and transferred the case to the Court of the learned Metropolitan Magistrate, 3rd Court, Calcutta.

(3.) It appears from records that during continuation of the said proceeding the present petitioner filed an application before the learned Magistrate on 10.10.94 with a prayer for dropping of the proceeding on the ground that Section 276DD was omitted by the Income Tax Law Amendment Act, 1987, with effect from 1.4.89. The present petitioner filed another petition on 17.1.95 as a supplementary to her earlier application dated 10.10.94 with a further prayer for dropping the said proceeding specifically on the ground that under Section 279(1) of the Income Tax Act, 1961, the Commissioner of Income Tax, W.B. III, Calcutta had no power either to accord sanction or to authorise the opposite party No.l to institute a proceeding under Section 276DD of the Income Tax Act with effect from 1.4.89 and as such the said proceeding is bad in law and the same should be dropped.