RENGASAMY J.

This petition is filed under section 482, Code of Criminal Procedure, to quash the proceedings in C. C. No. 128 of 1985 on the file of the Additional Chief Metropolitan Magistrate (E. O. I.), Egmore, Madras. The petitioners are the accused in the above case for the offence under sections 120B, 193, 196 and 420 of the Indian Penal Code, 1860, and also sections 276C and 277 read with section 278B of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"). The first petitioner is the company, the third petitioner is the managing director and the second petitioner is the director of the first petitioner-company. The first petitioner carries on the business of the manufacture and sale of suitcases, handbags, purses and other miscellaneous plastic goods. It has branches and sales depots outside the Madras city. For the year ended on March 31, 1981, the first petitioner submitted the return of income declaring the net income of Rs. 1, 45, 386. The assessment also was completed on the total income of Rs. 1, 56, 580. In the statement of account, the first accused had declared a closing stock of Rs. 19, 55, 984. On February 18, 1982, there was a search i