This Appeal is directed against the judgment and order dated 22nd February, 1993 passed by the Additional Sessions Judge, Greater Bombay thereby setting aside the judgment of Additional Chief Metropolitan Magistrate, 19th Court, Esplanade, Mumbai and acquitting respondent no. 1 from the charges under section 193 read with 191 of the Indian Penal Code.

2. The appellant is an Income-tax Officer through whom the Income-tax department has filed this Appeal. One K.K. Gupta, 1st Income-tax Officer of AII Ward, Mumbai had lodged the complaint against the respondent for committing offence of perjury under section 193 r/w. 191 of the Indian Penal Code. On 8th January, 1975 said Income-tax officer along with his staff had searched the residential premises of respondent no. 1 at Ocean View, Warden Road, Mumbai. During the search, they found huge quantity of silver and gold coins, miniature paintings, foreign currency notes. The coins were valued Rs.2,67,000/. The miniature paintings were valued Rs.40,000/.

At the relevant time, the Income-tax officer recorded his statement under section 132(4) of the Income-tax Act, 1961 (hereinafter referred to as “The Act”). Under the said section, he was legally bound to state on oath True facts. The respondent no. 1 stated on oath that these miniature paintings and gold & silver coins did not belong to him but it belonged to one Mr. Kalyanmal. The said statement was accepted by the Income-tax Officer at the time of search. Subsequently, on 29th September, 1975 respondent no. 1 submitted the Income-tax returns of the A.Y. 197576. disclosing the income of Rs.9,21,350/.

In the said Income-tax return, respondent no. 1 disclosed the value of gold & silver coins as Rs.2,67,000/, value of foreign currency notes as Rs.5,000/and value of miniature paintings as Rs.40,000/as belonged to him, so he paid Income-tax on value of these articles. The Income-tax authority, therefore, found that as he has paid Income-tax on the value of these articles and thus claimed ownership, his previous statement made on 10th January, 1975 is false and therefore, a private complaint was filed before the learned Magistrate for perjury. The Income-tax officer Mr. K.K. Gupta and other witnesses were examined by the prosecution and after assessing the documentary as well as oral evidence, the learned Chief Metropolitan Magistrate convicted the accused for the offence punishable under section 193 r/w. 191 of the Income-tax Act and thereby sentenced him to suffer S.I. till rising of the Court and to pay fine of Rs.25,000/. i/d. to suffer further R.I. for 6 months. The said judgment of conviction was challenged before the Sessions Court, Greater Mumbai in Criminal Appeal No. 103 of 1991. The Sessions Judge accepted the defence of the appellant and set aside the said judgment. Being aggrieved by the said decision of the Sessions Court, this Appeal against the acquittal is filed by the Income-tax Department.

3. The offence in question is of perjury and therefore, the issue before the Court is whether a statement made by the respondent dated 9th January, 1975 which is marked as Exhibit P7 is a false statement or not? It is an admitted fact that Income-tax department while searching the premises on the night intervening 9th January and 10th January, 1975, gold & silver coins, foreign currency notes and miniature paintings were found at the residence of respondent no. 1. At that time, The respondent made a statement on oath under section 132(4) of the Income-tax Act before the Authority that the articles belonged to Mr. Kalyanmal and thereafter while filing the returns in the month of September, 1975, he paid the income tax on the value of the said articles is not disputed under section 132(4). A person is legally bound to make a true statement before the Income-tax authority, is also accepted by both the parties.

4. The learned counsel Mr. Suresh Kumar has submitted that as per the procedure followed under the Income-tax Act, a person in