BHAGAT SINGH Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) CRIMINAL Misc. No. 6406-M of 1983 under Section 482 of the Code of CRIMINAL Procedure has been filed by seven petitioners, namely, Bhagat Singh, Kirpal Singh, Darshan Singh, Nirmal Singh, Jaswant Singh, Smt. Manjit Kaur and Smt. Swaran Kaur, while CRIMINAL Misc. No. 6409-M of 1983 under Section 482 of the Code of CRIMINAL Procedure has been filed by eight petitioners whose names are Kirpal Singh, Nirmal Singh, Balwant Singh, Jaswant Singh, Smt. Manjit Kaur, Smt, Swaran Kaur, Smt. Ravin-der Kaur and Smt. Surinder Kaur. Some of the petitioners are common in both the petitions and these petitions can be disposed of by this very order, since the law point involved in both the petitions is the same.

(2.) THE petitioners in both the petitions are partners of a firm known by the name and style of Messrs. Janta Oil Stores, Ferozepur Cantt. THE partners of this firm had been carrying on in the (accounting) years 1973-74 and 1974-75, the business of sale and purchase of petroleum products like high speed diesel, petrol and other lubricants. Besides these petitioners, Piara Singh, son of Daulat Singh, was also a partner of the aforesaid firm. In both the aforesaid years, the return of income of the firm was filed under the verification made by Piara Singh aforesaid. THE income shown in the return filed by the firm for the year 1974-75 was Rs. 86,757, while the income shown in the return for the year 1975-76 was Rs. 1,15,802. As far as the income for the year 1974-75 is concerned, the income-tax authorities came to a finding that the firm had deliberately concealed an income of Rs. 12,528 and as regards the income for the year 1975-76, the income-tax authorities came to a finding that the firm had deliberately concealed an income of Rs. 20,866. After obtaining due sanction from the CIT, the income-tax authorities filed two separate complaints against the petitioners, one under Section 277 of the I.T. Act against the firm and the partners and the other under Section 278 of the I.T. Act against Sarwan Singh, accountant. Piara Singh, partner, who verified the returns and Sarwan Singh, accountant, against whom a complaint under Section 278 of the I.T. Act has been filed, have not chosen to challenge the order of the learned Magistrate summoning them. However, the aforesaid petitioners in both the petitions have come up to this court praying for the quashing of the complaint and the order of summoning passed by the trial Magistrate on April 22, 1983.