The overriding effect of the Income Tax Act over general criminal law and the need for a correct interpretation of its provisions to prevent miscarriage of justice.

M.L. MEHTA, J

1. The present petition under Section 482 CrPC assails the order of learned ASJ dismissing the revision petition filed on behalf of DCIT vide order dated 1.9.2008, whereby the learned ASJ has affirmed the order of learned ACMM dated 8.10.2007 discharging the respondents.

2. The brief facts necessitating the present petition under Section 482 CrPC are that the Income Tax Department on the basis of some complaints by some approved trust/institutions that some persons were collecting donations in their names without authority and worked scrupulously aiding the donors in siphoning off the donated money back to them in dubious ways, after retaining a part of the alleged donation as commission. Search operation under Section 132 of the Income Tax Act (hereinafter referred to as ‘Act’) were conducted by the Income Tax Authority on 13th September, 1983 at the residential premises of one Sh. Vipin Mehra and one Sh. Prem Prakash. The investigation revealed that the modus operandi adopted for this purpose was that the donations were purportedly made in the names of trusts and institutions which had been approved either for the purpose of weighted deduction under Section 35 CCA and 35(1) (ii) of the Act.

3. In the present case, proceeds of one of the cheques were withdrawn by depositing it in third party account and the other by depositing it in bogus accounts. The accused company allegedly issued the cheque/bankers cheque in the sum of Rs. 25 lakhs in favour of two approved trusts/institutions namely (1) Hastimal Sancheti Memorial Trust, Poona (hereinafter referred to as ‘HSMT’) of Rs. 10 lakhs and (2) Poona Medical Foundation, Poona (hereinafter referred to as ‘PMF’) of Rs. 15 lakhs and subsequently got the cheques/bankers cheques encashed through bogus accounts.

4. The modus operandi in regard to the alleged donation of Rs. 10 lakhs was by issuing a special crossed "payee's A/c. only" cheque bearing number PWV 331524 dated April 28, 1983, drawn on Punjab National Bank, Kasturba Gandhi Marg, New Delhi, in favor of HSMT and the said cheque was signed by Respondent No. 2, N. R. Dongre, and Respondent No. 3, R. B. Sharma. The special crossing was, however, cancelled on this cheque under the signatures of Respondent Nos. 2 and 3 and the cheque was turned into a simple crossed one. This cheque was endorsed in favor o f one India Investment Co. by one signing as Om Prakash in his alleged capacity as secretary of HSMT whereas there is no person by the name of Om Prakash connected with HSMT. The said endorsement in favor of M/s. India Investment Co. was confirmed by one Shri Vipin Kumar, proprietor of M/s. India Investment Co., and the proceeds of the said cheque were collected by New Bank of India, Chawri Bazar Branch, Delhi, and credited to the account of M/s. India Investment Co. on April 26, 1983. The said account in the name of M/s. India Investment Co. with New Bank of India, Chawri Bazar Branch, Delhi, was simultaneously opened on April 22, 1983, by the said Vipin Kumar in his capacity as the sole proprietor of the said concern. Vipin Kumar was an alias of co-accused Vipin Mehra (respondent No. 8) and he had been introduced to the bank by one Jaswant Rai, partner of M/s. Hari Kishan Jaswant Rai, 3751, Gali Lahey Wali, Chawri Bazar, Delhi, holder of account No. CA 49. There was another credit to the said account of M/s. India Investment Co. in respect of cheque for Rs. 5 lakhs drawn by one K. S. Karla, Chief functionary of M/s. Varun Enterprises and similarly endorsed in favor of the said M/s. India Investment Co. The said M/s. Varun Enterprises is a partnership in which major share is held by one Deepak Singh and Family (HUF) and Deepak Singh is the son-in-law of accused Charat Ram. The entire amount of Rs. 15 lakhs credited to the said account of M/s. India Investment Co. was withdrawn by bearer cheques between April 28, 1983, and May 2, 1983, by accused Vipin Mehra.

5. A different modus operandi was adopted in res