Political contribution disclosure: prosecution quashed where accounts and tax return showed disclosure and no intentional suppression was proved.

Criminal prosecution for alleged non-disclosure of political contribution under the Companies Act was found unwarranted where the company had recorded the contribution in its accounts, referred to it in its income tax return, and replied to the show-cause notice. The court treated the absence of a specific disclosure column in the prescribed format as, at most, an irregularity and found no material showing intentional suppression. On that basis, the complaint and cognizance order were held to be an abuse of process and were quashed.

---

---

Issues: Whether criminal proceedings for alleged non-disclosure of political contribution under Section 182(3) of the Companies Act, 2013 were liable to be quashed under Section 482 of the Code of Criminal Procedure, 1973.

Analysis: The disclosure material showed that the company had recorded the political contribution in its accounts, referred to the donation in its income tax return, and furnished an explanation in response to the show-cause notice. The absence of a specific disclosure column in the prescribed format and the lack of any material showing intentional suppression weighed against the inference of criminality. In these circumstances, the omission was treated as at most an irregularity and not a deliberate violation attracting prosecution.

Conclusion: The proceedings were held to be an abuse of process of law and were quashed.

Final Conclusion: The criminal complaint and cognizance order could not be sustained because the alleged non-disclosure did not disclose the requisite criminal intent for prosecution under the Companies Act.

Ratio Decidendi: Where political contribution is substantially disclosed in the company's accounts and tax return and there is no intentional suppression, prosecution for alleged non-disclosure under Section 182 of the Companies Act, 2013 is not warranted.

---