Gujarat High Court
D.L. Ashish Foundation Trust Thro Jatin ... vs State Of Gujarat on 17 April, 2026
NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE
FIR/ORDER) NO. 23974 of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 23979 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE VIMAL K. VYAS Sd/-
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Approved for Reporting Yes No
✔
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D.L. ASHISH FOUNDATION TRUST THRO JATIN D JANI & ORS.
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MR DHANESH R PATEL(8226) for the Applicant(s) No. 1,2,3
MR MANAN MAHETA, APP for the Respondent(s) No. 1
MR AMAN MIR(10881) with MS KINJAL TRIVEDI for the Respondent No. 2
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CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS
Date : 17/04/2026
COMMON ORAL JUDGMENT
1. RULE returnable forthwith. Learned APP Mr.Manan Maheta waives service of notice of rule for and behalf of the respondent no.1 - State. Learned Senior Standing Counsel Mr.Aman Mir with Ms.Kinjal Trivedi, Junior Standing Counsel waive service of notice of rule for and on behalf of the respondent no.2 - Income Tax Department. Page 1 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026
NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined
2. By way of preferring the present applications under Section 528 of the Bharatiya Nagarik Suraksha Sanhita, 2023, the present applicants-accused seek to invoke the inherent powers of this Court, praying to quash and set- aside the proceedings of the Criminal Case Nos.30674 of 2018 and 38029 of 2019 pending before the learned Additional Chief Metropolitan Magistrate, Ahmedabad, for the offence punishable under Sections 276D and 276C(2) of the Income Tax Act, 1961, respectively.
3. Heard learned advocate Mr.Dhanesh R.Patel appearing for the applicants-accused, learned APP Mr.Manan Maheta appearing for the respondent no.1 - State and Mr.Aman A.Mir, Senior Standing Counsel with Ms.Kinjal Trivedi, Junior Standing Counsel appearing for the respondent no.2
- Income Tax Department.
4. Learned advocate Mr.Dhanesh Patel has submitted that the Assessee-Trust (i.e. the present applicants-accused) had filed its return of income for the Assessment Year 2013- Page 2 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026 NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined 2014 on 26.09.2013, declaring the total income of Rs.1,21,960=00. The return was processed under Section 143(1) of the Income Tax and selected for scrutiny, pursuant to which, a notice under Section 143(2) of the Income-Tax Act came to be issued on 24.09.2014. Thereafter, on 07.07.2015, a notice under Section 142(1) of the Income Tax Act was issued to the applicants-accused, however, the applicants failed to comply the same. On 18.03.2016, the Assessing Officer finalized the assessment proceedings and the total income of the assessee was determined at Rs.1,14,62,310=00 as against the return of income filed by the assessee for the Assessment Year 2013- 2014 of Rs.1,21,960=00. Thereafter, the assessee Trust (the present applicants) preferred appeal before the Commissioner of Income Tax, challenging the order dated 18.03.2016 passed by the Assessing Officer under Section 144 of the Income Tax Act, which came to be dismissed by the Commissioner of Income-Tax (Appeals) vide order dated 05.01.2018.
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5. Learned advocate Mr.Patel has further submitted that thereafter, the complainant - Shri Piyush N.Parmar, Income-Tax Officer (Exemptions), Ward-1, Ahmedabad, had filed complaints against the present applicants-accused on 31.03.2018 and 02.05.2019, respectively, for the offence punishable under Sections 276D and 276C(2) of the Income Tax Act. It is submitted that the learned Additional Chief Metropolitan Magistrate, Ahmedabad, vide orders dated 31.03.2018 and 02.05.2019, respectively passed below application Exh.1 in Criminal Case Nos.30674 of 2018 and 38029 of 2019, issued summons to the accused under Section 204 of the Code of Criminal Procedure.
6. Learned advocate Mr.Patel has submitted that being aggrieved by the order dated 05.01.2018 passed by the Commissioner of Income Tax (Appeals), the applicants had preferred appeal being ITA No.1016/Ahd/2018 before the Income Tax Appellate Tribunal, Ahmedabad, whereby the Tribunal, vide its order dated 29.12.2020, considered it expedient to set-aside the order of the CIT(A) and cancel the Page 4 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026 NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined ex-parte assessment order and remand the entire issues back to the file of the Assessing Officer for de novo assessment. Being aggrieved and dissatisfied with the order dated 29.12.2020 passed by the Appellate Tribunal, the Department preferred appeal under Section 260A of the Income Tax Act being Tax Appeal No.149 of 2021 before this Court (Coram : Bela M.Trivedi and Ashokkumar C.Joshi, JJ.), which came to be dismissed vide order dated 10.06.2021. Thereafter, the assessment proceedings came to be finalized by the Assessing Officer vide order dated 10.03.2022 passed under Section 144 read with Section 254 read with Section 144B of the Income Tax Act and the return of income filed by the assessee for the Assessment Year 2013-2014 of Rs.1,21,960=00 came to be accepted.
7. Learned advocate Mr.Patel has, therefore, submitted that considering the aforesaid, since the return of income of the applicants-accused for the Assessment Year 2013-2014 has been finalized and accepted by the Department, the very substratum of the criminal prosecution has disappeared. Page 5 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026
NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined Therefore, there is no ground to continue further with the criminal proceedings pursuant to the Criminal Case against the present applicants-accused and the same would be an abuse of the process of law. He, has, therefore, prayed that the proceedings arising pursuant to the Criminal Case be quashed and set-aside qua the present applicants-accused.
8. Mr.Aman A.Mir, the learned Senior Standing Counsel appearing for the respondent - Department, while vehemently opposing the present applications, has submitted that the Appellate Tribunal had remanded back the issues for de novo assessment, and thereafter, the same came to be finalized by the Assessing Officer and even accepted by the Department. However, he has submitted that the second offence punishable under Section 276D of the Income Tax Act is completely a different offence. He has further submitted that the applicants-accused have willfully attempted to evade the tax and failed to comply with the directions issued by the department. Therefore, the complaints came to be filed against the present applicants- Page 6 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026
NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined accused on 31.03.2018 and 02.05.2019, respectively, for the offence punishable under Sections 276D and 276C(2) of the Income Tax Act. It is submitted that the learned Additional Chief Metropolitan Magistrate, Ahmedabad, has rightly issued summons to the applicants-accused under Section 204 of the Code of Criminal Procedure vide orders dated 31.03.2018 and 02.05.2019 passed below application Exh.1 in Criminal Case Nos.30674 of 2018 and 38029 of 2019, respectively.
9. Learned advocate Mr.Mir has, therefore, urged that considering the aforesaid, this Court may not entertain the present applications and the same may be rejected.
10. Learned APP Mr.Manan Maheta appearing for the respondent no.1 - State, while adopting the arguments canvassed by learned advocate for the respondent no.2 - Income Tax Department, has submitted that having regard to the gravamen and seriousness of the offence, the applications may not be entertained and the same may be rejected.
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11. Having heard learned advocates for the respective parties and having considered the arguments canvassed by learned advocate for the applicants-accused, as well as the orders passed by this Court and the Appellate Tribunal, it appears that the Income Tax Department has accepted the return of income filed by the applicants-accused for the Assessment Year 2013-2014, therefore, the substratum of the proceedings initiated by the Department no longer survives. As the underlying tax liability has been settled and finalized by the competent authorities, to continue further with the proceedings pursuant to the Criminal Case would be an exercise in futility and an abuse of the process of law. Therefore, this Court is inclined to exercise the inherent powers conferred under Section 582 of the Bharatiya Nagarik Suraksha Sanhita, 2023, to quash and set-aside the proceedings pursuant to the Criminal Case qua the present applicants-accused.
12. In the result, the application is allowed. The proceedings of the Criminal Case Nos.30674 of 2018 and Page 8 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026 NEUTRAL CITATION R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026 undefined 38029 of 2019 pending before the learned Additional Chief Metropolitan Magistrate, Ahmedabad, for the offence punishable under Sections 276D and 276C(2) of the Income Tax Act, 1961, respectively, are hereby ordered to be quashed and set-aside qua the present applicants-accused. All consequential proceedings arising pursuant thereto are also quashed and set-aside.
13. Rule made absolute. Direct service is permitted.
(VIMAL K. VYAS, J.) /MOINUDDIN Page 9 of 9 Uploaded by M.A. SAIYED(HC00172) on Fri Apr 17 2026 Downloaded on : Sat Apr 18 02:35:11 IST 2026