GUNWANT SINGH SALUJA Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Heard Mr. Sumeet Gadodia, learned counsel for the petitioner, Ms. Nehala Sharmin, learned counsel for the State and Mr. Ratnesh Nandan Sahay, learned counsel for the opposite party no.2-Income Tax Department.

(2.) This petition has been filed for quashing the entire criminal proceedings arising out of Complaint Case No.09 of 2012 including the order taking cognizance dtd. 4/6/2012 passed by the learned Special Judge, Economic Offences, Ranchi, whereby, cognizance under Sec. 276CC of the Income Tax Act, 1961 has been taken against the petitioner, pending in the Court of the learned Special Judge VII, Economic Offences, Ranchi.

(3.) The complaint case was filed by opposite party no.2 alleging therein that a search under Sec. 132 of the Income Tax Act was undertaken in Mongia Group of cases by the Investigating Wing, Jharkhand and during the course of search operation, various incriminating documents relating to the petitioner were found and seized. It was further alleged that notices under Sec. 153A of the Income Tax Act for filing of returns of income for the Assessment Year 2005-06 to 2009-10 and 2010-11 were issued by the Assistant Commissioner of Income Tax, Central Circle, Dhanbad and the same were served on 15/2/2011 for compliance, but there was no compliance. It was also alleged that the petitioner was granted time till 15/4/2011 and further till 5/5/2011 for compliance, but there was no compliance. It was alleged that under the circumstances, the Assessing Officer issued a show-cause notice under Sec. 276 of the Income Tax Act on 19/7/2011 for initiation of prosecution proceeding for non-filing of return of income in time. It was further alleged that the petitioner filed a letter dtd. 26/7/2011 and took a plea that since the office of the Director General of Central Excise Intelligence, Jamshedpur has not given him the copy of the documents seized on 27/28/3/2006 during the course of search and seizure operation in his business premises, he is unable to furnish the return. It was also alleged that the Assistant Commissioner of Income Tax, Central Circle, Dhanbad wrote a letter to the Director General, Central Excise, Intelligence, Jamshedpur seeking his comments on seized documents. It was also alleged that in reply to the above letter, the Director General of Central Excise, Intelligence, Jamshedpur said that the authorized representative of M/s Mongia Steel Ltd. has already collected the original and photocopy of the documents seized. It was further alleged that the Assessing Officer submitted a current status report of the proposal of initiation of prosecution proceeding under Sec. 276CC vide letter dtd. 30/9/2011 and another letter dtd. 14/10/2011 to the Commissioner of Income Tax, Central Circle, Patna and submitted that still the petitioner has not filed returns of income. It was also alleged that the Commissioner of Income Tax, Central Circle, Patna gave his opinion that the petitioner has failed to comply with the notices of the Assessing Officer without assigning any reasons and has also failed to file the return of income and, thus, there was willful omission on the part of the petitioner in filing returns of his income and, as such, accorded sanction under Sec. 279 of the Income Tax Act for launching prosecution under Sec. 276CC of the Act for not filing returns of income without giving any reasonable cause and non-compliance of the notices of the Assessing Officer. On the basis of the aforesaid allegations, Complaint Case No.09 of 2012 was filed by opposite party no.2 in the Court of the learned Special Judge, Economic Offence, Ranchi.