Madras High Court
J. Dinakaran vs The Assistant Commissioner Of ... on 20 June, 2023
Crl.O.P.No.32092, 32092, 32099, 32102, 32106, 32109 & 32112 of 2019
IN THE HIGH COURT OF JUDICATURE AT MADRAS
DATED: 20.06.2023
CORAM:
THE HONOURABLE MR. JUSTICE SUNDER MOHAN
Crl.O.P.Nos.32092, 32099, 32102, 32106, 32109 & 32112 of 2019
and
Crl.M.P.Nos.17619, 17620, 17627, 17632, 17634, 17635, 17641, 17642,
17643, 17501, 17646 & 17647 of 2019
J. Dinakaran ...Petitioner / Accused (in all Crl.O.Ps)
-Vs-
The Assistant Commissioner of Income Tax
Central Circle – 3(2),
Room No.325, 3rd Floor,
New No.46, Old No.108,
M.G.Road, Chennai – 600 034.
... Respondent / Complainant (in all Crl.O.Ps)
Common Prayer: Criminal Original petitions filed under Section 482 of
Code of Criminal Procedure, to call for the entire records relating to the
complaint in E.O.C.C.Nos.185, 186, 187, 188, 189 and 190 of 2018 on
the file of the Additional Chief Metropolitan Magistrate, Economic
Offences – II, Egmore, Chennai and to quash the same.
For Petitioner : Mr. P. Ramesh Kumar
(in all Crl.O.Ps)
For Respondent : Ms. M. Sheela,
Special Public Prosecutor for
Income Tax (in all Crl.O.Ps)
COMMON ORDER
https://www.mhc.tn.gov.in/judis
1/5
Crl.O.P.No.32092, 32092, 32099, 32102, 32106, 32109 & 32112 of 2019
These Criminal Original Petitions have been filed seeking to quash
the proceedings in S.T.C.Nos.185, 186, 187, 188, 189 and 190 of 2018
on the file of the Additional Chief Metropolitan Magistrate, Economic
Offences – II, Egmore, Chennai, filed for the alleged offences under
Sections 276 C(1) and 227 of the Income Tax Act, 1961 for the false
version in the Return of Income filed for the various Assessment Years.
2.The learned counsel for the petitioner in all these petitions
submitted that the impugned prosecution is not sustainable since the
assessment orders were set aside by the Income Tax Appellate Tribunal
by order dated 01.08.2019 and the matters were sent for re-assessment
and hence the impugned prosecution is premature. The learned counsel
further submitted that the Department has now come up with another
circular, which states that before the assessment proceedings reaches the
finality, the prosecution would be premature. The learned counsel further
submitted that the petitioners have approached the Settlement
Commissioner and any orders passed therein would have a bearing in the
trial of the impugned complaints. Therefore, the learned counsel
submitted that the impugned complaints are liable to be quashed.
3.The learned counsel for the respondent, per contra, submitted
https://www.mhc.tn.gov.in/judis
2/5
Crl.O.P.No.32092, 32092, 32099, 32102, 32106, 32109 & 32112 of 2019
that the adjudication proceedings and the criminal prosecution can
proceed simultaneously. The adjudication proceedings need not be
completed before initiating criminal prosecution. In the instant case, the
Tribunal had set aside the assessment orders and directed re-assessment,
in which case the assessment is pending. Therefore, relying upon the
judgments of this Court in S.J.Surya Vs. Deputy Commissioner of
Income Tax reported in (2022) 139 Taxmann.com 3 (Madras) and
Geethanjali Mills Ltd. Vs. V. Thiruvengadathan reported in (1989) 179
ITR 558 (Mad), the learned counsel submitted that merely because the
Tribunal had passed an order of remand in the assessment proceedings, it
would not bar the Department to prosecute the assessee for the offences
alleged. The learned counsel further submitted that merely because, the
petitioner have approached the Settlement Commissioner, it would not
bar the criminal prosecution and any settlement arrived at would not
obliterate the offences committed by the petitioner.
4.This Court is of the view, the question as to whether the
prosecution is maintainable has to be adjudicated only before the Trial
Court. The points raised by the learned counsel for petitioner cannot be
https://www.mhc.tn.gov.in/judis
3/5
Crl.O.P.No.32092, 32092, 32099, 32102, 32106, 32109 & 32112 of 2019
adjudicated in this quash petition particularly, in the light of the law laid
down by this Court consistently. It is open to the petitioner to raise all
contentions before the Trial Court. Accordingly, these Criminal Original
Petitions are dismissed. Consequently, connected Criminal
Miscellaneous Petitions are closed.
20.06.2023
smv
Internet: Yes
Index : Yes/No
Speaking/Non Speaking order
To,
1.The Assistant Commissioner of Income Tax
Central Circle – 3(2),
Room No.325, 3rd Floor,
New No.46, Old No.108,
M.G.Road, Chennai – 600 034.
2.The Additional Chief Metropolitan Magistrate, Economic
Offences –II, Egmore, Chennai
3.The Public Prosecutor,
High Court of Madras.
SUNDER MOHAN,J.
https://www.mhc.tn.gov.in/judis
Crl.O.P.No.32092, 32092, 32099, 32102, 32106, 32109 & 32112 of 2019
smv
Crl.O.P.Nos.32092, 32099, 32102, 32106, 32109 & 32112 of 2019
20.06.2023
https://www.mhc.tn.gov.in/judis
