Criminal Original Petition filed under Section 482 Cr.P.C. sought quashing of proceedings for cheating under Section 276-CC of the Income Tax Act. Quashed due to rectification leading to employee refund entitlement.
Proceedings in C.C.No.154 of 2016 pending before the Additional Chief Metropolitan Magistrate are quashed.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED:28.09.2021
CORAM
THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN
CRL.O.P.NO.2723 OF 2017
AND
CRL.M.P.NOS.1903 AND 1904 OF 2017
1. M/s.Scissor Paper Stone Web Solutions Pvt. Ltd.
Rep. by its Director, Nitin Bindal
2. Nitin Bindal 3. Renie Prabhath Ravin 4. Anwin Joslin Chandrakumar
5. Bala Ganesh Gnana Prakasam
.. Petitioners/Accused
Vs.
The Income Tax Officer,
Corporate Ward 6(1), Room No.704,
7th Floor, Wanaparthy Block,
121, Mahatma Gandhi Road,
Chennai-600034.
.. Respondent/Complainant
Prayer: Criminal Original Petition filed under Section 482
Cr.P.C., to call for the records in C.C.No.154 of 2016, pending
on the file of the learned Additional Chief Metropolitan
Magistrate, E.O-II, Egmore at Allikulam, Chennai and quash the
same.
For Petitioners .. Mr.R.Palaniandavan
for Mr.Arun Karthik Mohan
For Respondent .. Mr.N.Baaskaran
Special Public Prosecutor
ORDER
The present petition has been filed taking advantage of
Section 482 Cr.P.C., seeking interference with C.C.No.154 of
2016, pending on the file of the learned Chief Metropolitan
Magistrate/E.O-II, Egmore at Allikulam, Chennai.
2. The first petitioner is the private limited company
and the petitioners 2, 3, 4 and 5 are its directors. The
respondent/the Income Tax Officer, Corporate Ward 6(1), Room
No.704, 7th Floor, Wanaparthy Block, 121, Mahatma Gandhi Road,
Chennai had preferred a complaint, for offences under Section
276-CC of Income Tax Act, 1961 with respect to assessment year
2013-2014/financial year 2012-2013 claiming that the income
returns have not been filed. The turnover transaction receipts
had been mentioned in the complaint.
3. It had been stated that inspite of such transaction,
the first petitioner herein, who was arrayed as the first
accused had not filed the returns of income tax for the
aforesaid assessment year 2013-2014. It had been further
alleged that returns of income tax, under Section 139(1) of the
Income Tax Act, 1961, should have been filed on or before
30.09.2013. It had been further stated that a show cause
notice, dated 24.06.2016 had been issued, which had also been
served and the first petitioner herein reply had sent reply on
13.05.2016.
4. Be that as it may, my attention is drawn to the
present petition where it is indicated that the first petitioner
herein filed returns of the income tax, for the assessment year
2013-2014 on 05.05.2016. But, that is beyond the period of when
it should have been filed.
5. It is now informed that the said returns, filed by the
first petitioner, had been processed by the authorities and
rectification had been made on 17.06.2021 and a reply has
actually come on record stating that the petitioners herein are
entitled for a refund of Rs.2,59,000/-.
6. It is urged by the learned Counsel for the petitioner
that, therefore, the offence under Section 276-CC would not be
attracted, in view of the proviso to the said section. Let me
limit the order to that particular fact that, after filing the
income tax returns, now being entitled for a refund of
Rs.2,59,000/-, pursuant to rectification conducted by the
respondent on 17.06.2021, keeping the Calendar Case, pending on
the file of the learned Chief Metropolitan Magistrate/E.O-II,
Egmore at Allikulam, Chennai would be of no avail as possibility
of conviction would also be quite remote. The proviso to
Section 276-CC, certainly, would be attracted in this particular
case.
7. I find no reason to keep the Calendar Case still
pending as against the petitioners herein.
8. A rectification order had been passed by the Income
TaxOfficer,/CorporateWard6(1) atChennaiin
AAMCS9353H/AY:2013-14/CW-6/(1)2021-22, dated 17.06.2021. Taking
that particular order into consideration, further proceedings in
C.C.No.154 of 2016, pending on the file of the learned
Additional Chief Metropolitan Magistrate, E.O-II, Egmore at
Allikulam, Chennai are quashed.
9. The present Criminal Original Petition is allowed.
Consequently, the connected miscellaneous petitions are closed.
Sd/-
Assistant Registrar(CS-IX)
// True Copy //
Sub Assistant Registrar
grs
To
1. The Additional Chief Metropolitan Magistrate, E.O-II, Egmore at Allikulam, Chennai.
2. The Chief Metropolitan Magistrate, Egmore, Chennai.
3. The Income Tax Officer,
Corporate Ward 6(1), Room No.704,
7th Floor, Wanaparthy Block,
121, Mahatma Gandhi Road, Chennai-600034.
Crl.O.P.No.2723 of 2017
and Crl.M.P.Nos.1903 and 1904 of 2017
RSV(CO)
RLP(22/10/2021)
2 issues framed by the court
Whether the offence under Section 276-CC of the Income Tax Act attracts where the accused has filed belated returns and is now entitled to a refund.
Whether the calumeter case should be kept pending given the remote possibility of conviction due to the refund entitlement.
3 provisions across 2 enactments
M/s.Scissor Paper Stone Web Solutions Pvt. Ltd.
Nitin Bindal
Renie Prabhath Ravin
Anwin Joslin Chandrakumar
Bala Ganesh Gnana Prakasam
The Income Tax Officer, Corporate Ward 6(1)
C.V.KARTHIKEYAN
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court