JAGMOHAN SINGH Vs. INCOME-TAX OFFICER A-WARD

JUDGEMENT

(1.) THIS order will dispose of 11 connected Criminal Revision Petitions Nos. 672, 673, 674, 675, 676, 677, 678, 679, 680, 681 and 682 of 1989, preferred against the order of Shri S. K. Chopra, Additional Sessions Judge, Hoshiarpur, dated July 10, 1987. I will draw up the facts in brief from Criminal Revision No. 673 of 1989.

(2.) PROSECUTION under Section 194a read with Section 276b of the Income-tax Act, 1961, was instituted against the present petitioners by the Income-tax Officer, A Ward, Hoshiarpur, on the allegations that Jagmohan Singh was the Chairman, Bhagat Singh General Finance Private Limited, Hoshiarpur, who filed the return for the assessment year 1982-83, the accounting period 1981-82, for himself and on behalf of the company. It was also verified by him. The income for the assessment year was shown as a loss of Rs. 6,258 and the amount was rounded off to Rs. 6,260. Along with the return, other documents such as balance-sheet, etc. , were also filed. In the process of assessment, the Income-tax Officer found that the company had paid a sum of Rs. 10,425 as interest to various creditors during the assessment year. He also furnished a list of 32 depositors regarding whom he had deducted the tax at source on interest on March 31, 1982. The income-tax was deposited on November 13, 1984, thus committing a default of 31 months in making the deposit. Proceedings under Section 201 (1) of the Act were initiated and interest at the rate of 12 per cent. per annum was charged. The assessee had committed a default with respect to the cash amount, but, keeping in view the provisions of Section 201, only 2 defaults have been clubbed together. Failure to deduct the income-tax at source and to deposit the same within the time is an offence punishable under Section 276b of the Act.

(3.) SHRI M. M. Bhalla, Chief Judicial Magistrate, Hoshiarpur, vide his order dated March 27, 1987, ordered the discharge of the petitioner and the company, on the ground that, from the complaint, the necessary ingredients of the offence had not been made out, since the assessee had deposited the tax along with the interest though the deposit was made late.