Section 319 CrPC cannot add accused for Income-tax offences unless sanction and partner-liability requirements are proved.

For prosecution of partners under the Income-tax Act, 1961, Section 319 CrPC could not be used to implead persons as accused unless the statutory preconditions were satisfied on the evidence. The Court noted that prior sanction under Section 279 was not shown, and the material did not establish that the applicants were in charge of and responsible for the firm's business, or that the alleged offence was committed with their consent, connivance, or neglect under Section 278B. An earlier order treating them only as representatives of the firm had already attained finality. The impleadment order was therefore set aside.

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Issues: Whether the applicants could be impleaded as accused under Section 319 of the Code of Criminal Procedure, 1973 in respect of alleged offences under the Income-tax Act, 1961, when no previous sanction under Section 279 of that Act was shown and the evidence did not establish the conditions of Section 278B of that Act.

Analysis: The earlier order had already accepted that the applicants were brought on record only as representatives of the firm and not as accused, and that order had attained finality. The application under Section 319 sought to convert that position into one of criminal accusation without showing the requisite previous sanction under Section 279 of the Income-tax Act, 1961. The evidence relied upon only showed that the firm had four partners and that registration and assessment-related forms had been filed, but it did not disclose strong and cogent material showing that the applicants were in charge of, and responsible for, the conduct of the business of the firm, or that the offence was committed with their consent, connivance, or neglect. A conjoint reading of Section 319 of the Code of Criminal Procedure, 1973 and Section 278B of the Income-tax Act, 1961 required those statutory conditions to be satisfied before the applicants could be proceeded against as accused.

Conclusion: The order permitting impleadment of the applicants as accused could not be sustained and was set aside, in favour of the appellants.

Ratio Decidendi: Section 319 of the Code of Criminal Procedure, 1973 cannot be invoked to array persons as accused for offences under the Income-tax Act, 1961 unless the statutory preconditions for their prosecution, including prior sanction where required and the ingredients of partner liability under Section 278B, are satisfied on the evidence.

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