1. This petition has been preferred by the petitioner under Section 482 Cr.P.C. seeking setting aside of criminal complaint dated 20.02.2018 (Annexure P-1), bearing registration No.COMA-2391/2018, registered on 20.02.2018, CNR No.PBAS030023922018, along with all the subsequent proceedings arising therefrom including summoning order dated 02.04.2018 (Annexure P-2) passed by the Court of learned CJM, Amritsar.

FACTUAL MATRIX

2. Briefly stated, the facts of the case are that the complainant-Assistant Director of Income Tax, Investigation Wing, Amritsar, filed a complaint (Annexure P-1) against petitioner Nos.1 to 3, who are the Directors of M/s RS Rice Mills, and against petitioner No.4, who is an employee of the said firm. One Dalbir Singh @ Resham Singh was also stated to be working as an employee in the firm. It is alleged in the complaint that the petitioners, in connivance with each other and other persons, were involved in fraudulent and illegal financial transactions with the intention to conceal taxable income and evade lawful tax liability.

2.1 It is alleged that the petitioners generated unaccounted cash by showing false purchases of paddy in the name of M/s RS Rice Mills, despite no real purchase of paddy having taken place. In order to create false entries in the books of account, cheques were allegedly issued in the names of paddy suppliers. These cheques were stated to have been encashed through certain supplier firms, alleged to be dormant entities operated by one Raman Arora, who would return the cash amount to the petitioners or the partners of the firm after deducting commission at the rate of 0.8% per transaction. It is alleged that the cash so generated was thereafter used for making investments in real estate through various middlemen.

2.2 It is further alleged that the petitioners concealed the true financial position of the firm and filed false income tax returns for the relevant assessment years. The petitioners also alleged to have created a fake and fictitious identity in the name of Resham Singh son of Ajit Singh, and opened a bank account in his name by using a forged driving licence, with the intention of carrying out benami property transactions. According to the complaint, various immovable properties were purchased and transferred in the name of the said fictitious person, whereas the actual beneficiaries were allegedly the petitioners themselves.

2.3 It is also alleged that the petitioners furnished false statements, fabricated records and misleading information before the authorities in order to conceal the true nature of the transactions and to obstruct the lawful proceedings initiated by the Income Tax Department. On the basis of these allegations, the present complaint (Annexure P-1) has been filed against the petitioners for commission of offences punishable under the relevant provisions of the Indian Penal Code as well as the Income Tax Act.

2.4 After pursing the complaint (Annexure P-1), the learned Chief Judicial Magistrate, Amritsar, vide order dated 02.04.2018 (Annexure P-2), summoned the accused/petitioners for the offences punishable under Section 200 Cr.P.C. read with Section 120-B IPC, Sections 276C, 277, 277-A, 278 of the Income Tax Act and Sections 176, 177, 181, 186, 187, 192, 423, 465, 467, 468 & 471 IPC.

SUBMISSIONS

3. Learned Senior counsel for the petitioners submitted that the petitioners have been falsely implicated and the entire complaint is based on incorrect facts and contradictory stands taken by the respondent-Department. He submits that petitioner Nos.1 to 3 are directors/partners of M/s RS Rice Mills, while petitioner No.4 is an employee thereof. It is submitted that Dalbir Singh @ Resham Singh, who was also associated with the firm, was a real person known to all concerned who expired in the year 2020. It is argued that the very foundation of the complaint is factually incorrect, as the Department attempted to represent Dalbir Singh @ Resh