The pendency of re-assessment proceedings and the setting aside of assessment orders by the Income Tax Appellate Tribunal do not bar the launch of criminal prosecution for violations under the Income Tax Act, 1961.

JUDGMENT

(Common Prayer:- Criminal Original Petitions are filed under Section 482 of Code of Criminal Procedure, to call for the entire records in E.O.C.C.Nos.101, 102, 103, 104, 105 & 106 of 2015 on the file of Additional Chief Metropolitan Magistrate (E.O.I) Chennai, Alikulam Road and quash all further proceedings against the petitioner.)

1. Crl.O.P.Nos.29914, 29915, 29916, 29917, 29918 & 29919 of 2015 are filed to call for the entire records in E.O.C.C.Nos.101, 102, 103, 104, 105 & 106 of 2015 on the file of Additional Chief Metropolitan Magistrate (E.O.I) Chennai, Alikulam Road and quash the same.

2. Respondent filed these complaints against the petitioner for the violation of provisions under Income Tax Act, 1961, which are punishable under the Act. The allegations made in the complaint, in brief, are extracted here,

Complaint in E.O.C.C.No.101 of 2015:

Petitioner/accused is a cine actor and Director deriving income from remuneration for acting in movies and also directing movies. He ought to have filed his return of income for the assessment year 2002-2003 on or before 31.07.2002. However, he did not filed his return of income within the due date prescribed by the statute and thus contravened the provisions of Section 139 (1) of the Income Tax Act, 1961. It is an offence punishable under Section 276 CC of Income Tax Act, 1961. He ought to have paid the advance tax within the prescribed dates of 15.09.2001, 15.12.2002 and 15.03.2002 and filed the relevant return for the assessment year 2002-2003 on or before 31.07.2002. Petitioner did not pay advance tax and failed to file return of income within the statutory due date. Thus, committed the offence under Section 276 CC of the Income Tax Act, 1961 by concealing true the correct income by not filing the return of income and committed an offence under Section 276 C (1) Income Tax Act, 1961. The survey operations under Section 133 A were conducted on 04.09.2003 and a search was conducted on 26.10.2005. It revealed unaccounted receipt of money by the petitioner towards remuneration for directing movies. A statutory notice under Section 148 of Income Tax Act, 1961 dated 30.03.2004 was issued to the petitioner to prepare a true and correct return of total income including the undisclosed income assessable for the assessment year 2002-2003 within 30 days from the date of service of the notice. Notice was acknowledged on 05.04.2004. Petitioner ought to have filed the return of income on on or before 05.05.2004, which he failed. Through a letter dated 03.05.2005, he requested time to file return till 15.06.2004. But he did not file the return of income even after 15.06.2004. Therefore, a show cause notice dated 22.07.2004 was issued. Petitioner filed the return of income for assessment year 2002-2003 only on 15.09.2004. He admitted a total income of Rs.40,00,000/- in the covering letter. It is stated that petitioner received gross remuneration of Rs.50,00,000/- for directorial service of the film ''KHUSHI'' (Hindi). A sum of Rs.10,00,000/- was claimed as expenditure. Assessment was completed under Section 143 (3) on 30.03.2005 assessing his total income at Rs.1,68,38,410/-. Apart from these, a sum of Rs.30,00,000/- was added as unexplained deposit in his bank account in Dena Bank, T. Nagar Branch. Gross tax and interest demand worked out to Rs.85,82,780/-. After giving credit to payments made of Rs.13,00,000/-, net demand was raised at Rs.72,82,780/-. Penalty proceedings under Section 271 (1) (C) were initiated simultaneously. Petitioner filed petition before the Joint Commissioner of Income Tax, Media Range on 12.05.2005, requesting for stay of collection of demand till the disposal of appeal by the Commissioner. This petition was rejected on 08.08.2005. Petitioner filed a letter dated 23.11.2005 before the Income Tax Officer, requesting a time for payment of taxes till the search issues are resolved. It was observed by the Commissioner of Income Tax, that “As soon as PO is