JUDGMENT :

1. By the present Special Criminal Application under Article 226 of the Constitution of India and under Section 482 of the Criminal Procedure Code, 1973, the petitioners herein are seeking quashing of the Criminal Case No.2706 of 2000 pending before the learned Chief Judicial Magistrate, Surat.

2. The brief facts in the present case are that, the raid came to be carried out on the business premises of the petitioner No.1 company and at the residence of its Directors on 01.12.1995. Block Assessment order dated 30.01.1997 for the period from 01.04.1985 to 06.01.1996 came to be made in respect of income of Rs.32,75,608/-. That thereafter in an appeal to the Income Tax Appellate Tribunal, vide order dated 18.05.1998, the learned Tribunal reduced the income to Rs.37,25,347/-. The said order of the learned Tribunal came to be given effect to and accordingly on 30.11.1998, a show cause notice came to be issued to the petitioners by the Dy. Commissioner of Income Tax (DCIT). That by order dated 08.06.2000, the Commissioner of Income Tax sanctioned the prosecution against the petitioners herein under Sections 279(1) of the Income Tax Act, 1961 [“IT Act” for short]. Aggrieved by the lodging of prosecution, the petitioners filed Criminal Misc. Application No.3436 of 2004. Pending the said Criminal Misc. Application No.3436 of 2004, by order of merger dated 02.02.2007 passed by the Bombay High Court, the N.R.Paper & Board Pvt. Ltd. came to be merged with the N.R.Agarwal Industries Ltd. That the said Criminal Misc. Application No.3436 of 2004 came to be dismissed for non- prosecution vide order dated 02.02.2012. That thereafter the petitioners have filed the present Special Criminal Application.

3. Mr. S.N.Soparkar, learned Senior Counsel appearing for the petitioners submits that the company N.R. Agarwal Industries Ltd. which was the sister concern of the erstwhile N.R.Paper & Board Pvt. Ltd. into which the present company stood merged had also preferred Special Criminal Application No.3437 of 2004 challenging quashing of the complaint lodged under Sections 276C(1), 277 and 278B of the IT Act as in the present case. It is submitted that by order dated 26.10.2018, the Coordinate Bench of this Court has allowed the Criminal Misc. Application No.3437 of 2004 and set aside the impugned criminal proceedings initiated by the respondent No.2 herein being Criminal Case No.2705 of 2000.

3.1 The learned Senior Counsel further submits that the other group companies of the petitioner company against whom the criminal prosecution came to be lodged by the respondent No.2 also came to be quashed by the another Coordinate Bench of this Court vide order dated 17.03.2023 in Criminal Misc. Application Nos.3438 of 2004, 3441 of 2004, 3439 of 2004 and 3440 of 2004.

3.2 The learned Senior Counsel further submits that the orders dated 26.10.2018 in Criminal Misc. Application No.3437 of 2004 came to be challenged before the Hon'ble Supreme Court which also came to be dismissed. He further submits that even the common judgment and order of another Coordinate Bench in Criminal Misc. Application No.3438 of 2004 and other connected matters also came to be challenged in the Hon'ble Supreme Court by way of Special Leave Petition (Criminal) No. 9355 of 2024 which also came to be dismissed by order dated 15.07.2024. The learned Senior Counsel, therefore, submits that the present petitioner being a group company, the prosecution of the same has been simultaneously initiated in view of the raid carried out in the business premises of the petitioner company on 01.12.1995 and hence, the present Special Criminal Application be allowed.

4. Mr. Rutvij R. Patel, learned standing counsel appearing for the respondent No.2 submits that the present petitioner is a part of the group company of N.R.Agarwal Industries Ltd. He submits that the raid had taken place simultaneously. He further submits that the prosecution in case of other group companies has been quashed by this Cour