2019 (3) TMI 1985

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he learned counsel for the petitioner submitted that the petitioner is an individual engaged in business of arranging finance, dealing with bricks, conducting chit fund, trade old boxes, waster paper assessed to tax by the respondent herein under pan No.AIGPD7898D. The respondent defacto complainant filed complaint in pursuance of the sanction of the Principal Director of Income Tax(Investigation), Tamil Nadu & Pondicherry under Section 277 of the Income Tax Act, 1961. The complaint is with respect to assessment years 2009-2010, 2010-2011, 2011-12, 2012-2013, 2013-2014 and 2014- 2015. The petitioner did not disclose his actual income of business transactions and search was conducted and found that the petitioner did not maintain documents a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ct. Therefore, he prayed for quashment of the entire proceedings in E.O.CC.Nos.130, 134, 135, 131, 132 & 133 of 2016 pending on the file of the Hon'ble Additional Chief Metropolitan Magistrate, EO-II, Egmore, Chennai. 4. Per Contra, Mrs.M.Sheela, Special Public Prosecutor for Income Tax appearing for the respondent contended that the petitioner failed to disclose his entire income for the assessment year 2009-2010, 2010-2011, 2011-12, 2012-2013, 2013-2014 and 2014-2015 to the tune of Rs.35 crores. Therefore, it is punishable under Section 277 of Income Tax Act. She further submitted that the petitioner did not disclose his money lending and chit business in his income tax returns. Therefore, a search was conducted on the office premise....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... with taxing provisions and the collection of taxes. The Incometax Act seeks to enforce tax compliance in a three fold manner; namely 1) Imposition of interests 2) Imposition of penalties and 3) Prosecutions. In the fight against tax evasion, monetary penalties are not enough. When a calculating tax dodger finds it a profitable proposition to carry on evading taxes over the years, if the only risk to which he is exposed is a monetary penalty in the year in which he happens to be caught. The public in general also tends to lose faith and confidence in tax administration when a tax evader is caught, but the administration lets him get away lightly after paying only a monetary penalty- when money is no longer a major consideration with him if ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nent so that it may take also into consideration the order to be passed therein. Even here the discretion should be exercised judicially and in such a way as not to frustrate the object of the criminal proceedings. There is no rigid rule which makes it necessary for a criminal court to adjourn or postpone the 538 hearing of a case before it indefinitely or for an unduly long period only because some proceeding which may have some bearing on it is pending elsewhere. But this, however, has no relevance to the question of maintainability of the prosecution. The prosecution in those circumstances cannot be quashed on the ground that it is a premature one." 8. The Hon'ble Supreme Court of India has held that the concept of mens rea is integ....