RAJASTHAN WOOL PROCESSORS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) BY this petition, the petitioners have prayed that the criminal proceedings in consequence of complaint No. 59 of 1987 filed by the Income-tax Officer, "A" Ward, Bikaner, be quashed.

(2.) INCOME-tax Officer, "A" Ward, Bikaner, has filed a complaint against the accused petitioners in the year 1987 in the Court of the Chief Judicial Magistrate (Economic Offences), Rajasthan, Jaipur, stating therein that petitioner No. 1 is the partnership firm and petitioners Nos. 2 to 9 are its partners and they are carrying on the business in the name of a firm, Messrs. Rajasthan Wool Processors at Bikaner. During the assessment year 1983-84, the abovementioned firm had submitted its income-tax return on March 3, 1984, stating therein that the income of the firm was Rs. 364. On perusal of the income-tax return, it is found that the firm had paid Rs. 1,34,993 as interest on the loans taken from the various parties.

(3.) IN Amar Chand Agarwala v. Shanti Bose, AIR 1973 SC 799, 804 ; [1973] Cr. L. J. 577, their Lordships have observed in paragraph 20 as under :