Karnataka High Court
M R Asokavardhan vs N K Radhamani on 22 August, 2008
Author: C.R.Kumaraswamy
Bench: C.R.Kumaraswamy
"3 4;, Seciiien 275-0(1), 2'?6{3{:, f2'?£f3I.) aruzi 2?? 9:' Tax Act, 1961.
This Cr1.A. camimg an £01',»<"31fd@1"S fhi5§" (§§1i?, _'_fh¢:i._V V' ifiourt made: thc": fofl::)Wir1g:--- A p This Criminal Appeai 3?8(3.') of Cr.P.CE by the 1' praying to set aside the Aj_i1d§1}<:1:rf passed by the Spi. Catizréfl {§ii2§,f;¥:és';""Ba:1ga}0re in CC NQ.6;Z/ :§QQ{) reafiflndentj 8.CC'L1S€(i far {ha effence §:.;_3iis1":ab_1}<3-.:f;;t§{i+:§'f"Sections 275»c«{13, 27ec:<:, 276D;'a'n£_1 Vthxe 1Tfssr;§'I11r3 Tax Act, 1961. t,hc:>ug11 this Iflattfif is Eisted for ercirars, 2,¥i3t§~§'~..thg,¢§§:§:¢,«éI1t sf bflérh Side Ceunsai, the: mattsr is ¥§f1f33£"{i ::§I1}::1€ri3;s. Even the recerds were alga cafisd fer fjiizave perrused the Saws.
3. Thé Dfiptiiy' COfi1I11iSSi.OHCI' Qf {scams Tax, A. Circie 6(1), Bzmgalere subunits that the ac:€.:us.§:d is an 8.5368866 an me mcerds 0f inconle Tax fi€:pa:'t.:1}€:I1t. ami <./ 3 is camgring an b1,1s.~:§n.ess !J.I1C1.€T£' the name and styfisg. .M;,f_s Sazatrgsh Buiklers. 0:3. (39.02, 1994, the . i'€t¥.1I'I} Qf incemfz far tha a$s€$s1:;.1€::1t 3*éé:"s;. _f deciaring a {(3:31 iflcfllllfi of Rs.67,€::{)0}z ';Qf;~. :
a surveywas cenducted 0:1 }j)L1Sifi€SS pr5e:11i:%_?eS~@f':t}1€ '~ ' a{:cru$<:::d under Section 133;%,....Qfv._ti'1¢ E.i1c:ém7ts Act. Dlzring this S1:£r*iI<:§§ c§;€;1:z::.§1"§.* ,_iVi:f:i<'f;:1'ii§';:i;:1;'_:'.g;'i:i1f1Vg (i_0C1.1m»::I1ts wem seized 2a_:1d th__ey r@i%7eVLa?}:e}d.'t1?:é::a:_1;f:e;:iCc1,2s;ed has net ££§_sck3s<;; d fi1'_:':~',-" _a:1 (Vi' the true grate (sf afilaiys Wm regarg: :9 ix-;g&&3geg.3TgJqa Eiabifities. On G2Ai1}2.1996, a natizzs _u:1fiE::>., Sfifithififi 1:48 of the magma Tm: Aizt was éi¥s$3.i€;d €:§"tft§5:.«_acc1;segi to bring the esaaped iI1C{)I}11€ to M96, another natice was issuedu Siflcfir. f:,§:€;'.r;:7 was 2:3 :*,c~=:s;::<3§":se {mm ihe accuseai, V!SL§11:}H}f}§fS.. Llfldfif Sectien 133 of ms: EQCGIEE5 Tax £3':
T._'<'§:'%;Vt€;'s:§; 12,2433. 1996 was issued to tbs accusad Caiiing "z1p§€:n hfif ta prsémce this beaks 0? accounts; 01} A' $8.0-$19963, the aecugeci flied. certain 66233115 but no beeégs <35 a:::<:m..:,1':'i:s wax? produced The camggiaimgnt U 4 3ul:2:11§ts that again 1:2}; 3 letter ciateé 17¢O6_.;'_1"§§¥E5_~ _ ()4: 1 L199? directad 1:116 €!_C€I.1$€(i t€}H}Z31'OCi1jC6:"'C§i§f:.. 0? 'A V. accotmt under Sactien 142(1) 1<<}8{i'.:E.) 0f.'the '7{::fc::;:m%_A' Tax Act 4' Tha A.sse:sjsi11g _ c{§fi2}3.i€t.s§d the a.sse$$me11t4 proceedingé; »€i a;§:ed 10.03,. 1998 detamnizzing v..t()f2€::L} H 7 accusad at Fi$.9(),600,/:e.'" ;~ie.111h':I1:§§:sVV_that in the original reiiuzn jihe accuséd cieizlared an inceme E16 aSS€S$If£1('3}§1t order dated }.{}6C3§.?g.'3;'*';?9S the 0f the accuseci was dsteiminad at accliseé furnished iII&C{3U_fEi'f,€ details é_z."_;{'i' ._;_>_;i$=;t;: :'£j"\:',':I:3.CV:VVfE?.°éBL;/§:fl{§. the particulars and Wi§§}fLlH}* triad to V _ evadéié 'i3g;"'%';<;'€, ciisciagifig serves: i§1c::>:;<:e in the oxégzlzzaj 'A , _3:~§:'3,'§.;§1._"fl E3'? givmg false deciaratien and C{m1z11i¥:t€<i_ an .'{$§'f:éi:1t':ie ptigiisimble 1.;1"1der §§fi€'£iGI}.S 2?6€3(1}, i276C{"3' arid T " 9:' the Encame Tax Act. The COII1f}1§iiZ18_1"£§. states that 'Ehfj accused flied pmfi: am? 1955 accaufit, baiargsts: sizes: U 5 et(:., wit}: her remrr; ef inceme and it is pos$i1:;}@ '¥{:11T1j,z when the beaks are maintained. In spite: "
iettars and :1::;«!:iC6::=; zmder Section 14'2{1} {if the Income: Tax Act, the a.cc1:sed fai»}:§:9gif:V backs af accaunt and t11:w,;s ::(3::1_:.§':;it};e<i[V.v--"?;§I1"tiiféifiés *' ptflznishable under Section :1?; §'€E-fir _::2f 'Vi,-hé ii1c¢:11e Tax Am;
:73. <Eog1':i,é:a.r1C6;' x2§,?a_g;§.: ..§[a..1<'_::n.' 'Fh€: Pregicling (}ffiC€I', v. Sp€C§.a1 'vfffiliff 'filcczmmics Qffencets have framed é§ga:i;:".a5s'"sf.""'_.i?.§73.e accused fer the r.>ff€::1c6: .-v.."p1T1nV§»s:»§§;1$;.tiict u:1V§ii:t:t":v§'_;sf_;cjAc;i;i{;1"::3s '2?E:<j7'i[1)s :2?€:C§C:, 2"?6D aflci t.}_f;é::.i;?x:ii<;:g_;.f;e Tax Act; ACCZESEQ pleaded net guilty f9:' ':h:é 9:Vf?":1§:':':3::r:V=g;<sVVia1§.ege<:§, against him. In this Trial Cxzmrti ' €§:e: c@:§§1a§.§afi{ was e:::aminse:i. as PW}, zémd EEXPT: "£0 5 A { §~;*e;ré:"'-..;z1ar}§€,{L T133 ziafsnca has 11231: sxamimed any .___"""2xziLT;nesses nor marked arg: dgzczumerzzts in support Bf her rcas€.
Q/, 6
6. The sum and suhstaflce of the the Trial Ceuri: is as feliewsz The Complaint i3 filed" in A':i:sp;ee';t7.g}f assessment year accused alleging tha}§,'«--...VsheV" $18.3' ¥£:iH?§:}I,1§T'm afiempted te evade te§;7,V..._V'%feeiled : i'{i:'12;§.':1;h return of i1.1ec;rz1e'3§§?it1j:i:'i'dei.e'time, faii1eci" to preeiuee aeeounfiéé Vémd' arid also guilty of _=--f:;:11i.;:;}*:.i.;1--g1 f:;;.3iS$_' 0:1 ve1*ii"1ee,1E7§::}:'§§e»e' _A{:cS1_1S*§ecifi£.efi'*--~~'1"e£I,2rns an a I 1' é j her income as R$;:F;?",(3()£},!V-.-'; A:.}jV"7E'11e.¢_:é;'t':'fiJey was conducted 011 EL !:2".a};.995, 'fiie assessment effieer ~ Cefieilgdeé tijgeé , aSS€SSI}:}.611t under Seetien {he 1:19-m11eTax Act, an 1<).<_:»3.1998 . ftifxe izmeme of the accused 2:5 " .RS§9(;F:,t§§i:iQf". The accused challenged the '}:»:sv:"$:eseVei.:11e:1i: erder hefere the Ineeme Tax ' " = Afipeiiate Txibtinal and the assessment erder
-ewes set. aside. The complainant has met challenged the said. order age it hag attained finality U. 4; Assessing. _ "C)ffic'-:32: is set asida, $335 tax 'pé."§;.a;b1:: by E135" amtissd ix mi}. and themfiatra, 3ih§i_ £i£'€(':l} $§§{i cannm: be pracasdecl fer faiiims i{} f:1§?ja.§.$=11 I'f:ff§.'£I'1"i cf incgmfi in due time, AA ; :.;*:a}: $.13: a;11$gaE;i_<:a1:1 that tbs accusfid has ..5fa_ii<:i{i {,5} p:'{::d1:<:€=: a<:e':mmt$ and doculnents may ex:ter1d :0 3 yearg and with fi.m::, ----.__ HOWEVQE', pmviso appended ta this S=:~,cti<:;:";. f--._T"'--
carves out 331 excaptionfi wharein. it state§'_:€}:£$t'_ ~ -5 V a perm}; shat} 119?, bi': §;)r0(:t::®:i§d_.. .4 ur1de.2: this Sczctigm for faéhiréhti)«f1,u:12is1'iT t§1¢._ ' 7 return of magma in time tifiizg 139(1) (2? 1:216 Income, Act.,t'3i'7 $3.3 f1l£'I1iSh{3d befers tTh§§' fif1e assessmsnt 3*ea1':'@1j §3é.§«*N§ibI€: him on the: trsital i11c0iii%e;T_L1éte.§2i':i:_1§L§ regular asmssmcni as r6:<:1i1(:<=:k';'£ b;¢f"{;h€ é>;<:13$;V:é;;i1c«:*: tax, if dfiiiiacied at source, it ciéiscis' got. .éx%iee5c§..;VR7::;3,0O0/~. In View of the fact2"thaf.V flair: Va=:s'se:§a;Lsm€nt. a1*rived at by the "V ;:§'E:€ '?I:3.a§ {ff'iou.:*t has further Qhservsd p:.:11i$3:1_ab§s: nude? Section 2'?6-Z) :31" the K200115362 Tax Act. and 113 has filed false Sfsatisttzzfizt. cf veriificatian zmcler S€§{_!{i€}1} 2?? 2/
-2.)!' Cami belcew is centrarjg 'tie the faczts, has failed :0 agpymiaie the scepa 3?
'4"--._VvVL;':'-§¢cf':i0I;;'vfL§;?6€i{1.}, Q'?6C;(3', 2?fiE} and '£77 0f aha 331501115 VA §§{:i:. The Trial Cour": has mat prapériy appliad its % .m§n£i :9 the: facts; and ezvidence lad in fizis cage! The ':':'ia1 <;1eu1*'§ has cammittad :1 gave c:IT<:sr in appreciating thf:
am of the 111001116 'Fax Act. Admitteziiiy {he5€:
aliegatians are based an the a.ssassr1::m_it~~ order passed by the Afimssing Ofiicer i"
is 36: aside by the income Tax 4 T1*i§3u11al. if the assessi11g1;'{)rd§:" fmm C{)I1Sid€I'8.ti€_}1"1, £11392: is':£1§3 i§iiuré"Q§91'~tT, " {Bart ef the accused to p§v*0s:§:1C<:{'ag_c@L:f§t;$ d<3{:ume:3:1t:s and 3150 t,£'1¢:j4_L:%:;-¥.,§ <=-:s1;i<3I1T £;)f false st,za:e1n»:::1t {§;i"~Uefi;fic§i:,i:§gétzrjs no'£ a%A'Vis@ and therefara, thc§w'E.':fi3;i~v~,<;f1€$1.1:rt:, ax(;.q'é1_itt6c1 the a:.:cus€:dVfQ19 the ijéffsficm; _:3;i1§:geg§-, " Aggi?;é§1r§§£.E _ 1i:3:.{ '%;!r1:>: ~s.-ama, the dagzartzlaazgt of raszcznzzfi ha:-;_cs3:1":éi :1j;.wi:i*_;~ this appaai. = "L.«$a;fié:d"'{§ euns31 fer the appeiiam: submiimd exceptinns p£'{}Vi.Ci$d in the gyrgvise a.pp€:z1ded tr} Sectien U 1% before it The Txéal C/011:1. <:<§:1si[dering; the fast ma?---.:he agsesgmmat Qrder 0f the a._s$€:~;$®§ was 36:3: 9,3i;V¢7.f.;e_." V. income Tax: Appézilata 'I'z'i':31_11":al, it has concligsémn that no of§'e:1c& has bfiefn ::_: 3f:;§.§: "<j;u-1%; - '-
11. E1: arder ti} S<%:c;t_i<;3"; 'the * L' prgfiecuiiozz has {.9 €:$1:ab1i$h_."é;hat..L' acci13edvA..'ivi1£fL1I§y attamptmi in 3:33; mafaiier "€391:'¢:az;:§;c§§%:~.};;:.ax, psnalty GE' i.:1§erest charg ~*:a..'f:§2a:_ 112f;t:E é1:*' 'z%fL':t, 7 V:£ii1fuE attempt to evade 31:135.! intamst is a positive act 011 111516 gar: cf t}i:ELacc:1sed';.'§at}'é=::2i is required {:0 brlng her {$19 charge: " a.gai:aSi:.__t§E:5: 33565333' Necessary menfiureg. is V. :§eq.2;\i:*a<:i" vf1'S{£ib§iS}'1£E:d 1:15: the pmse<:ut§e11 to attract fS¥::CiiQn"2?'§3(c§ the instant case, as stateezi s:*a;*E§$r, the _ a$$€§$-S31-éfziv irrcitzg' af {ha 3$ses$i}:1g Qfiiccr has E36631 Set.
. Size {magma Tax A§3§e§.§at,e Tfibzmal and that .' e"1'=::Vié:" 1':as met baerz ahailemged zmé it has baceme final"
"£"§:ér:=:f<3;r§: affence afiegsd agaizzfi respenden: ~ accugaqi : {Eggs 119?: fi.XiS§;, Taking intfl accaumt ail aspects fif the %/ :2 case arid aim mzaieriai ggiaced 911 regard, in §1_E€igIBCf§§. <3? ga.a::qs..1itt.m_ passeitd by the Trial and prapar, Therafori-3, 1;: my eat it} interfezre sxsith the imggzgged 4€f>ZT¢i%*'E',f' of V
112. in View r:>i",.$1f;e abs:-'-:~E:. " s:ii:§c:}u1:'~;si.t_i:1,..I $3.53 that fc~§1Qwi11g:
Sc1/-
JUDGE