Crl.P. No.5480 OF 2016

c/w Crl.P. No.5481 OF 2016

1

IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 28^TH DAY OF JANUARY, 2021

BEFORE

THE HON’BLE MR. JUSTICE SURAJ GOVINDARAJ

CRIMINAL PETITION NO.5480 OF 2016

C/W

CRIMINAL PETITION NO.5481 OF 2016

BETWEEN:

1.

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.574, PARK HOUSE, 80 FT. ROAD,

8^TH BLOCK, KORAMANGALA,

BANGALORE - 560 095,

REPRESENTED BY ITS DIRECTOR,

MR. VASUDEVAN SUDHINDRANATH.

2.

DR. CHIRIANKANDATH JOSEPH ROY,

CHAIRMAN & MANAGING DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.574, PARK HOUSE, 80 FT. ROAD,

8^TH BLOCK, KORAMANGALA,

BANGALORE - 560 095,

3.

SRI. VASUDEVAN SUDHINDRANATH

DIRECTOR-FINANCE,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.51/7/1, "CHITRAKOOT", RATNA AVENUE,

RICHMOND ROAD,

BANGALORE - 560 025.

4.

MRS. LINY MOONJELY ROY

CHAIRMAN & MANAGING DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.574, PARK HOUSE, 80 FT. ROAD,

8^TH BLOCK, KORAMANGALA,

BANGALORE – 560 095.

Crl.P. No.5480 OF 2016

c/w Crl.P. No.5481 OF 2016

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5.

SRI. ABDUL GAFFAR PALLIKANDY

DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

3/2, AL AMEEN APARTMENTS,

PATALAMMA TEMPLE STREET,

BASAVANAGUDI,

BANGALORE - 560 004.

6.

SRI. JOSEPH THERUVIPARAMBLI ALEXANDER

DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

THERUVIPARAMBIL HOUSE,

P.O. KUMBALANGHI,

ERNAKULAM - 682 O07,

KERALA.

7.

SRI. SUNIL PARAKKAL KRISHNAN

DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.81/6, JYOTHI,

NANDIDURGA EXTENSION,

BENSON TOWN,

BANGALORE - 560 046.

8.

CHIRIYANKANDATH VARGHESES JOSEPH

DIRECTOR,

M/S. CONFIDENT PROJECTS (INDIA) PVT. LTD.,

NO.110, 1^ST MAIN, 7^TH BLOCK,

KORAMANGALA,

BANGALORE - 560 095.

... PETITIONERS

(COMMON)

(BY SRI.VIVEK HOLLA, ADVOCATE OF M/S. HOLLA & HOLLA)

AND:

THE INCOME TAX DEPARTMENT,

BY DEPUTY COMMISSIONER OF

INCOME TAX, CIRCLE-2(1) (1),

BENGALURU – 560 095,

REPRESENTED BY DR. K.J. DIVYA.

... RESPONDENT

(COMMON)

(BY SRI. K.V. ARAVIND, ADVOCATE)

Crl.P. No.5480 OF 2016

c/w Crl.P. No.5481 OF 2016

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THESE CRIMINAL PETITIONS ARE FILED UNDER SECTION

482 OF CR.P.C. PRAYING TO SET ASIDE THE ORDER DATED

29.03.2016

PASSED

BY

THE

COURT

OF

SPECIAL

COURT

(ECONOMIC OFFENCES), BANGALORE IN C.C.NO.85/2016 AND

C.C.NO.86/2016 RESPECTIVELY (ANNEXURE –B) AND QUASH THE

COMPLAINT FILED IN [C.C.NO.85/2016 AND C.C.NO.86/2016

RESPECTIVELY ON THE FILE OF THE COURT OF THE SPECIAL

COURT (ECONOMIC OFFENCES), BANGALORE (ANNEXURE-A)

THESE CRIMINAL PETITIONS COMING ON FOR ADMISSION

AND HAVING BEEN RESERVED FOR ORDERS ON 11.12.2020, THIS

DAY, THROUGH VIDEO CONFERENCE THE COURT PRONOUNCED

THE FOLLOWING:

ORDER

Criminal Petition No.5480 of 2016

1.

The petitioners are before this Court seeking for

setting aside the order dated 29.03.2016 passed in

C.C.No.85/2016 pending on the file of the Court of

Special Court (Economic Offences), Bengaluru, in

issuing summons to the petitioners herein.

2.

The first petitioner is a Company carrying on the

business

of

construction

of

apartments

and

development and sale of plots. Petitioner Nos.2 to

8 are the Directors of the said Company. It is

stated that

Crl.P. No.5480 OF 2016

c/w Crl.P. No.5481 OF 2016

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2.1. The

Company

follows

the

accrual

accounting

system

i.e.,

income

and

expenses are accounted regardless of

whether

or

not

money/cash

actually

change hands. The sale is entered into the

books when the agreement to sell is

entered into with the customer rather than

when

the

money/cash

is

collected.

Irrespective as to whether the purchaser

pays the amount or not, the income is

shown in the books of account of the

Company and tax is paid thereon.

2.2. The Company h