Acquittal in tax and criminal prosecution upheld where no perversity was shown and the prosecution failed to prove fabrication.

Interference with an acquittal in a prosecution under the Income-tax Act and the Indian Penal Code is unwarranted unless the appellate court shows the judgment to be perverse. On the facts noted, the accused had filed the income-tax return and TDS certificate on behalf of the contractor, but there was no evidence that he fabricated a bogus certificate. The prosecution also failed to discharge the initial burden of proving that the named contractor was fictitious. The Income-tax Appellate Tribunal's finding of innocence had attained finality and was relied on by the trial court, so the acquittal was left undisturbed.

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Issues: Whether the acquittal of the accused in a prosecution under the Income-tax Act and the Indian Penal Code called for interference in appeal.

Analysis: The accused had filed the income-tax return and accompanying TDS certificate on behalf of the concerned contractor, but there was no evidence that he fabricated the bogus certificate. The prosecution did not discharge the initial burden of proving that the named contractor was a fictitious person. The finding of the Income-tax Appellate Tribunal that the accused was innocent had attained finality, and the trial court had relied on that finding. In an appeal against acquittal, interference is not warranted unless the judgment under challenge is shown to be perverse, and no such perversity was demonstrated.

Conclusion: The acquittal was and no interference was called for.

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