CA. No. 647 of 1990

1. This appeal is preferred by the complainant, Assistant Commissioner, Salem, against the order of acquittal passed in F.O.C.C. No. 341 of 1989. The case of the complainant is that the first accused is a private limited company engaged in running a spinning mill, in the name and the style of "Jawahar Mills Limited."

The second, third and fourth accused are the principal officers of the first accused who are responsible for the conduct of the business. The provisions of section 269SS of the Income-tax Act, 1961 ('the Act') prescribed the mode of acceptance of any deposit or loan by the income-tax assessee. The above provision has come into force with effect from 1-7-1984. On scrutiny of the books of account of the first accused company for the year 31-3-1985, it was noticed that the first accused accepted deposit of Rs. 10, 000 or more violating the provisions of section 269SS. In the case of Vaiyapuri, an amount of Rs. 30, 000 was received in cash on 8-1-1985.

The complainant issued summons to the accused to produce books of account on 16-3-1988. In response to his summons, the second accused had appeared before the complainant with the relevant books