IN THE HIGH COURT OF KARNATAKA

DHARWAD BENCH

DATED THIS THE 22^ND DAY OF APRIL 2021

BEFORE

THE HON’BLE MR. JUSTICE MOHAMMAD NAWAZ

CRL.P.NO.100393/2020

BETWEEN:

1. BASAVARAJ I HATAPAKI

AGE. 57 YEARS, OCC. BUSINESS,

R/O BASAVA TRADERS, CTS NO.2396,

MARKET ROAD, GOKAK, TQ. GOKAK-591307

DIST. BELAGAVI.

2. SURESH G. SHOLAPURMATH

AGE. 67 YEARS,

OCC. CHARTERED ACCOUNTANT,

COURT ROAD, GOKAK,

DIST. BELAGAVI-591307

...PETITIONERS

(BY SRI. SHRIHARSH A NEELOPANT, ADV)

AND

INCOME TAX DEPARTMENT

REP. BY ITS INCOME TAX OFFICER,

SHRI.ANGAD KUMAR,

AGE. 41 YEARS,

INCOME TAX OFFICER,

WARD-I, GOKAK-591307.

..RESPONDENT

(BY SRI.Y.V.RAVIRAJ, ADV.)

THIS CRIMINAL PETITION IS FILED U/SEC.482 OF

CR.P.C.,PRAYING TO QUASH THE PRIVATE COMPLAINT IN CC

NO.707/2015 AS PER ANNEXURE-A PENDING BEFORE THE

PRINCIPAL CJ AND JUDICIAL MAGISTRATE FIRST CLASS,

GOKAK FOR THE OFFENCES PUNISHABLE UNDER SECTION

276C AND 277 OF INCOME TAX ACT, 1961, IN SO FAR AS

PETITIONERS CONCERNED.

2

THIS PETITION COMING ON FOR ADMISSION, THIS DAY,

THE COURT MADE THE FOLLOWING:

ORDER

Petitioner No.1 is no more. Hence, petition is

abated against petitioner No.1.

2.

The petitioners have preferred this petition

under Section 482 of Cr.P.C. seeking to quash the

proceedings

initiated

against

them

in

C.C.

No.707/2015, on the file of Court of Principal Civil

Judge and JMFC, Gokak, for offences punishable under

Sections 276C(2) and 277 of Income Tax Act, 1961.

3.

Heard

the

learned

counsel

for

the

petitioners and learned Standing counsel appearing for

respondent/complainant.

4.

On the basis of a private complaint filed by

the

respondent,

the

aforesaid

proceedings

were

initiated

against

the

petitioners.

The

sum

and

substance

of

the

complaint

averments

are

that

accused No.1 is an assessee under the Income Tax

Act.

Accused

No.2

is

the

Chartered

Accountant

providing Professional services in the name and style

3

as ‘M/s. S.G. Sholapurmath and Company’ at Gokak.

Accused

No.1

filed

returns

of

income

for

the

assessment year 2008-09, prepared and filed by

accused No.2, wherein the tax liability payable under

Section 140(A) i.e., self assessment tax has been

worked out and the tax due was claimed to have been

paid on the date specified in each case. Further,

counter file of the income tax challan duly stamped by

the SBI, Gokak was filed with returns in support of

payment of the tax. While processing the returns of

the income on AST, it was found that the self

assessment tax has been paid at a lesser amount than

actually shown in the counter file of the income tax

challan enclosed along with returns and extra digit

was prefixed to the amount actually paid. Thus,

showing the higher figure. It is alleged that the

challan was materially altered after payment to show

excess payment/credit/claim of Rs.1,000/- by accused

No.1 in the returns filed by him.

5.

It

is

alleged

by

the

complainant

that

accused Nos.1 and 2 have colluded with each other in

4

the fraudulent claim by paying less tax but claiming as

if they have made higher payment of tax thereby

evaded the payment of tax and therefore, liable for

prosecution under Section 276C(2) of I.T. Act, 1961.

6.

The learned counsel for the petitioners

would

contend

that

as

per

circular

F.No.285/160/90/IT(INV)/190

dated

07.02.1991

issued by Government of India Ministry of Finance, the

income

escaping

assessment

upto

a

sum

of

Rs.25,000/-

is

immune

from

prosecution.

In

the

present case, the tax amount involved is less than

Rs.25,000/-

and

therefore,

he

submits

that

proceedings are liable to be quashed.

7.

The learned counsel for the respondent

would submit that as per the above circular, if the

amount is less than Rs.10,000/-, the prosecution need

not be initiated for an offence under Section 276C(2)

of the Act.

8.

In

the

instant

case,

according