Gujarat High Court
M/S. Associated Microtech Pvt. Ltd. ... vs State Of Gujarat on 4 November, 2025
NEUTRAL CITATION
R/CR.MA/30583/2017 ORDER DATED: 04/11/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR QUASHING & SET
ASIDE FIR/ORDER) NO. 30583 of 2017
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M/S. ASSOCIATED MICROTECH PVT. LTD. THROUGH
MUSTAKALI HUSENBHAI VIJAPURA & ORS.
Versus
STATE OF GUJARAT & ORS.
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Appearance:
MR. VIRAL KANSARA for MR. ARCHIT P JANI(7304) for the
Applicant(s) No. 1,2,3,4
MS. AYUSHI VYAS for MS MAITHILI D MEHTA(3206) for the
Respondent(s) No. 2,3
MR. JAY A. MEHTA, APP for the Respondent(s) No. 1
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CORAM:HONOURABLE MR. JUSTICE J. C. DOSHI
Date : 04/11/2025
ORAL ORDER
1. At the outset, I refer the order dated 27.09.2018 as under:-
"Heard learned advocate for the applicants. There appears some technical lapses on part of the Deputy Commissioner of Income Tax as the applicants have already deposited the amount along with interest.
In that view of the matter, Rule.
Interim relief in terms of paragraph 9(C) & (D) till final disposal of this application."
2. Today, when the matter is taken up for hearing, I have heard Mr. Viral Kansara for learned advocate Mr. Archit P. Jani for the petitioners and learned advocate Ms. Ayushi Vyas Page 1 of 5 Uploaded by Raj Subhash Dhobi(HC01779) on Thu Nov 06 2025 Downloaded on : Thu Nov 06 23:22:14 IST 2025 NEUTRAL CITATION R/CR.MA/30583/2017 ORDER DATED: 04/11/2025 undefined appearing for Ms. Maithili D. Mehta for the Income Tax Department as well as learned APP Mr. Jay Mehta appearing for the State.
3. The petitioners have filed this petition to quash the prosecution launched under Section 276CC read with Section 278B of the Income Tax Act, 1961 (hereinafter referred to as the "IT Act") by way of filing a private complaint registered as Criminal Case No.18979 of 2017 before the Court of Additional Chief Metropolitan Magistrate, Ahmedabad. The allegation levelled against the petitioners is that they have not filed the original E-return of Income for the Assessment Year 2013-14 within the due date, which was supposed to be filed on or before 30.09.2013, as per Section 139(1) of the "IT Act". Show cause notice was therefore, issued by the Commissioner of Income Tax on 25.01.2017. The written submission was filed by the petitioners on 04.02.2017.
4. The income tax along with the penalty was paid subsequent to raising of the show cause notice, and therefore, the offence under Section 276CC read with Section 278B of the Income Tax Act, 1961 since it was raised, the criminal complaint was filed, which was registered as a Criminal Case as stated hereinabove.
5. Let me refer to Section 276CC and 278B of the "IT Act" as under:-
"276CC. Failure to furnish returns of income.--If a person wilfully fails to furnish in due time the return of Page 2 of 5 Uploaded by Raj Subhash Dhobi(HC01779) on Thu Nov 06 2025 Downloaded on : Thu Nov 06 23:22:14 IST 2025 NEUTRAL CITATION R/CR.MA/30583/2017 ORDER DATED: 04/11/2025 undefined fringe benefits which he is required to furnish under sub- section (1) of section 115WD or by notice given under sub- section (2) of the said section or section 115WH or the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under clause (i) of sub-
section (1) of section 142 or section 148 or section 153A, he shall be punishable,--
(i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty-five hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
(ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine:
Provided that a person shall not be proceeded against under this section for failure to furnish in due time the [return of fringe benefits under sub-section (1) of section 115WD or return of income under sub-section (1) of section 139]--
(i) for any assessment year commencing prior to the 1st day of April, 1975; or
(ii) for any assessment year commencing on or after the 1st day of April, 1975, if--
(a) the return is furnished by him before the expiry of the assessment year; or
(b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source, does not exceed three thousand rupees.
278B. Offences by companies.--(1) Where an offence under this Act has been committed by a company, every person who, at the time the offence was committed, was in charge of, and was responsible to, the company for the conduct of the business of the company as well as the Page 3 of 5 Uploaded by Raj Subhash Dhobi(HC01779) on Thu Nov 06 2025 Downloaded on : Thu Nov 06 23:22:14 IST 2025 NEUTRAL CITATION R/CR.MA/30583/2017 ORDER DATED: 04/11/2025 undefined company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence under this Act has been committed by a person, being a company, and the punishment for such offence is imprisonment and fine, then, without prejudice to the provisions contained in sub-section (1) or sub-section (2), such company shall be punished with fine and every person, referred to in sub-section (1), or the director, manager, secretary or other officer of the company referred to in subsection (2), shall be liable to be proceeded against and punished in accordance with the provisions of this Act."
6. The provision of Section 276CC starts with the words 'wilfully fails to furnish in due time' the income-tax return, he would be responsible for paying a penalty. The case on hand indicates that the petitioners have already paid the Income Tax along with the penalty.
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7. The only cause is that they had not paid the Income Tax in time and show cause notice has been issued by the Income Tax Department. However, the penalty is charged before the very said course, and therefore, in the aforesaid circumstances, even before filing of the criminal complaint, the cause to file a private complaint was not surviving.
8. In the aforesaid conspicuous circumstances, continuing the criminal proceedings against the petitioners would be cumbersome, unnecessary and would be abuse of process of law.
9. For the reasons stated hereinabove, this petition is allowed. The impugned Criminal Case No.18979 of 2017 registered before the Court of Additional Chief Metropolitan Magistrate, Ahmedabad as well as all consequential proceedings initiated in pursuance thereof are hereby quashed and set aside qua the petitioners herein. Rule is made absolute. Direct service is permitted.
(J. C. DOSHI, J.) Raj Page 5 of 5 Uploaded by Raj Subhash Dhobi(HC01779) on Thu Nov 06 2025 Downloaded on : Thu Nov 06 23:22:14 IST 2025