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IN THE HIGH COURT OF DELHI AT NEW DELHI
NEENA BANSAL KRISHNA
Raj Kumar Kedia, S/o Late Shri S.N. Kedia – Appellant
Versus
Income Tax Office – Respondent
| Table of Content |
|---|
| 1. petitions for quashing criminal complaints under income tax act. (Para 1 , 2) |
| 2. definition and implications of accommodation entries. (Para 3 , 4 , 5 , 6) |
| 3. undisclosed income and tax evasion. (Para 7 , 8 , 9) |
| 4. legal implications of retracting statements. (Para 10 , 11 , 12) |
| 5. challenge to the jurisdiction of sanctioning authority for prosecution. (Para 18 , 19 , 20) |
| 6. nature of jurisdictional errors in sanctions. (Para 23 , 24 , 25) |
| 7. arguments on the timing of the criminal complaint. (Para 26 , 27 , 28 , 29) |
| 8. necessity for due process before prosecution. (Para 33 , 35) |
| 9. interpretation of legal terms in income tax act. (Para 38 , 40 , 41 , 42) |
| 10. discussion of jurisdiction in filing criminal complaints. (Para 46 , 47 , 48) |
| 11. final ruling dismissing the petitions. (Para 55 , 56) |
JUDGMENT :
NEENA BANSAL KRISHNA, J.
1. The above two Petitions under Section 482 Cr.P.C. read with Article 227 of the Constitution of India have been filed for quashing of Criminal Complaint No.516654/2016 and Complaint No. 516655/2016 under Section 276-C(1) and 277-A Income Tax Act, 1961 for the Assessment Year 2015- 16 and Order dated 14.09.2017 passed in Criminal Revision Petition No.
The court upheld the validity of the prosecution's sanction and found the complaints valid, confirming that pending assessments do not impede criminal complaints under tax evasion laws.
Prosecution under S.276CC requires jurisdictional Assessing Officer, regular assessment, and penalty initiation; absent these, quashed as abuse of process.
An annulled penalty under the Income Tax Act negates the foundation for criminal prosecution for concealment unless reversed, thus quashing ongoing prosecution.
(1) Wilful tax evasion – Mens rea of assessee is required to be proved – In absence, lodging such prosecution would result into futility.(2) Wilful tax evasion – Circulars issued by Revenue are bindi....
Criminal prosecution requires credible evidence; unauthenticated foreign documents are insufficient to establish a prima facie case of tax evasion under the Income Tax Act.
The main legal point established in the judgment is that the Settlement Commission had exclusive jurisdiction from the date of the petitioner's application, and the penalty imposed was without jurisd....
The main legal point established is that the failure to remit tax, without evidence of a wilful attempt to evade tax, does not constitute an offence under Section 276 C (2) of the Income Tax Act.
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