Madras High Court
Y. Jayalakshmi vs Income Tax Officer on 20 November, 1992
Equivalent citations: [1993]202ITR369(MAD)
JUDGMENT K.M. Natarajan, J.
1. This petition is filed for stay of all further proceedings in E. O. C. C. No. 115 of 1986 on the file of the Addl. Chief Metropolitan Magistrate (E. O. 2), Madras, pending disposal of the petition to the CIT for compounding the charges against the petitioner.
2. When the matter was taken up for hearing learned standing counsel for the IT Department drew my attention to the decision of this Court reported in Kamala Ganesan vs. ITO (1992) 198 ITR 152 (Mad), wherein this Court, after relying on the earlier decision of the apex Court, held as follows :
"Held, that the questions whether the petitioners were directors or not and whether they were principal officers were questions of fact which the trial Court alone could consider. The High Court could not receive additional evidence in the form of the memorandum and articles of association of the company and give a finding on facts in proceedings under s. 482 of the Criminal Procedure Code, 1973. Merely because a petition for compounding the offences is pending before the IT authorities, the criminal trial could not be stayed. The complaint could not be quashed."
3. I am in entire agreement with the view expressed by the learned judge. Applying the said ratio to the facts of this case, the proceedings before the criminal Court cannot be stayed because a petition for compounding of the offence is pending before the CIT. Accordingly this petition is dismissed. However, in view of the request made by learned counsel for the petitioner that if the criminal case is disposed of expeditiously and subsequently the pending application before the IT Department is allowed, the relief prayed for will become infructuous. Hence, a direction may be given to the authorities to dispose of the pending petition within a reasonable time to which course counsel for the Department has no objection. Accordingly, the CIT IV, Madras, before whom the compounding petition is said to be pending is directed to dispose of the same as expeditiously as possible, and, in any event, within three months from this day.