Ismail S/O Yusuf Pathan vs Sri Benakatti R L on 11 June, 2010

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Karnataka High Court

Ismail S/O Yusuf Pathan vs Sri Benakatti R L on 11 June, 2010

Bench: Jawad Rahim

EN THE HZCEH COURT OF' IQKRNATAKA

CIRCUIT BENCH AT DHARWAD

DATED THIS THE 2 W may 01:' JUNEI, 2019..  ~  

BEE'OR'EI-

THE HONBLE MR.LJUST1CE:V';J§{'§VAQ :"42;x:~:~miz:§"  _  

CRLR M7536;/2i3V1,<j".,_

BETWEZEZN:

{Sm-ail, , 

S5/0 Yuguf Pazhan,  

Agaz Major, OCCI Business. _  I

R/ca 1674/A, NTi.11l8._1:.3L}§}di_I3-:,"§,_"v. '

Near Bus~Stan.d,.VE{;;ibag.  V    ' 

"Dist: Belgaum.   _ _   V _V   V";;--:'PET1T1C)NE3R

(BY SR1.AHA:E»iVEL3_"}§_LI  'RA'E~§,';b.ﬁAN SMH, ADVOCATE}
AND:
Sri, Bena§<a:té'R.L.  "  "

Income 'I'ax'O.fficVer, ._  ° 
Wazd ?$Lx2(2) In:7,or:1s'3v'T£:x O fies,

 , &{)§:pv:~ 'E:§is§::*ia:'t Hosp'iVta}__,____& _
   RESP()NDEN'E'

  TE232$'«».'C1"%§11i;fz~2iE Riivisgiczrl Peiition is fiieci ujs 482 (35

C.f';PQ€3f pré1§?1jrag_:'T1=tc> quash the emiiréi créminai prsceeding in
C'CA£*§.;:«.§ﬁ_?";"{}4.~" pending an {he {E26 of ;}'MFC EE {2<>ur*;.,
Tfﬁeigamta, zmd etc.

_ _ V V "'~7Efh<:* p<~:?;i$;.io::: c:{>ming can fax" <3:"::k:rs_§ Eihig éay, {he C{3Li.§'!L
' , §;*s3;c§:3..£§3{~3 f:3Z§<>w%.11g <:»:'d<':r:





T\)

ORDER

"§'hés petition is §':;i<:3.ci under sctciiorz 482 (>1 the accused fz3:::ir1g charge for c>ff<:r1cr-:3 punishzakiie"uij'c§<§:*-:___ Sectiens; 177, 182, 191, 1912 8:; 198 of and 1' iZ'?'9(1) of Izzceme T6129: AC5. He A1 proceedings.

2. The petition is; aci'r:{1iss1dr§; 1.

3. Perusal of income Tax Office-3:, Ward N(g2_{2)_? Beigaiﬁiié ifmg'-;%1_<_i};§..'g'_,;. 2-7? of the Inrseme Tax 2"}§:.t 200 of Cr.P.C.

to take C0gr11;;:*}é{iifi(:{:V_V:':1ga«i.;1'$i:__ ﬁght: petitionars for <>ffencers; pz1nis1:a§31::}113der' 182, 19}, 192 81; 198 of IPC and sE:r::_t_i<:3ns3 f2'?"?',' 2'}?f"9(_1A)'._0§"§i'1c()r:1<:t '1'ax; ékct; 011 See: allssgation mjthatj'1f'::{j?L11i'(}f1€f:" .§{§;"E".€§._;"1'_v1$ the assesses on tha ﬁle of V_s:<>1'r:;;:1ai::Vam;,-éérélvatirzg to in.cz>rr1<5: derived by him :"mm 111:':

€1%:';1:';i'1.*§é;»1«::. "'v>az%é*'=;11fE:<V.i'e::'E Raibag Sahakzari Saikiiaré 1<Z.gi:"1<}1an€:

Ni}=*am._§ta..V_V" a<:<:u:~3€:d wag :15}: reguiar in filing <31" {he iv./:;z:<}r1'2<~: ":;1::i~ Téﬁtélfiiﬁi The {:<}mps.':21in;2m: c<;r1du<:'£r::<:i 3: S%l.E'"V€3}?' »i_':":1A;1é%1f~..$z3{:€.i<>§:3 133?; Q1" 1111:: §§"::<:::::':2:'5 '?2:X Asiti, an 20.8.2092, 1 Ra) Yhereafter, t§"}.{*3 pcztitiimczz" féicci income 'tax rc-:t*:;1r:.*1s for assesasmem jgcagrs 1996497 <:.<;>v<:ré:1§§ asaessmem y:»:ar$ §'£%9E3-- (36) in farm N{>.I«3D. Wbi1<~3 filing such £"€'{,'.L1i{1'1S, h€f..~'C~!1'C';1€'&S'f2V{"3 '' Form 1\§0.16A Cﬁrtifécate of deduction at sczurce f,,_1_r1i:'§-6:2" 'és:_e'£%ic;r1"

283 of the Encomci: Tax Act, 196}, 'bvy .th«i~3' 'Dire<:§{)r, Raibag SahaZ<e1ri Sakkarc:7..Kziz:khane_"_; Claiming credit GYTDS of Rs.72,65«.3;f----.

4. Cm V-"f31'iI"§{3.':1'L§V{;"~.1'i :",1'1(i'"_CC)$}512.iD£};fit'fﬂufid the TDS cerziﬁcate was I10t a1i{h€§1.ifi_C . '-.V§3C21l}L}'tiI'}.2gvV'Ii1's'~E5; g~<"3r1uin{-mess of ; a;1f;eX&éd" wiii;_i1i€'r::>.turn, called upon certificate w'hic}ii W the Syndica¥.€'__ E;_1§j:;_i<., '§<5~:'u1"§;~}i§h information to 'X-'€.:'h{'3¥',}"1€:1': dﬁpﬂsif; ('3V{,Ti)S ':gﬁ"1<}_:1nt_'has been made by Raibag Sahakari S:gk':;::<é "Ni'}*am§%;a, The Synciicraize Bank, Raibag,__i:":£iif:1a{t:c*l_ .tt'ié:_ <;E3mpIiair1ar1t vide letter dated .._tha%; x:%1':;2v-------:«--:mount has been depogited. toxxzards ..<_:e:>mp§air1amt concluded that the petiiioner hag. fc?ged,*%':j@n r*:0c:ed or creazésci {his Saié 313$ at€3:"¥:i.fi::at€ to f misieégdu {he V.iz:<:<>me tax au:?:<>rit'i<:s and Y.hf;',f"€:",'b}' <:ommi'i;t<':& " .:'n'c sazgti; faaféiiigg w§t§'1i:'; {ha mis;c§"1i:3f'0ft:er1d.r-sringg false :-'::vi<i::--:m:::. _ =_"§"§:3'£: gs; GEES s:,>f€;§'1~:-*: §§i'{)L':§}{§E'§ ii} sesfk pr{3s;&:%'L:{i{:-IL W '3. The c0mp1z1i11.ami: has fL'z}"t§"1€I' aawsrred that he zlswaeci m>t,i(:r: t<:> éhe pt-3tit%.<:»r:e2* GE} 31,10.2(JQ2 u:1d:;=:r Secgion 12??' and 2?8 of tilt: income Tax Act, Caiiiing upon ShOW cause under whai circumsiamces the Certificate wag produced. The E%{,iCLiS:f3Hd.. h_-ié"I€'t-{Er '(.Li~?1{"€,€§ 28.02.2003 submmed czxplanatiora "'cu._gi';':}:»=«,;:¢=::VT_~ credit 0f TBS on the basis of TDE3; c;;§r:ifiE:a.:é is;VsuT:S%:'i i:§.»w1i1_irr3 by M the factory which was liable :0 pay the: afﬁauﬁt. other words, the €x.pla.r'1a%':i011V produced the, certificate as giver1__tG him...by_ 't,he._Raibé1'.'g S*3§}:;{i<ari Sakkarre Kariihema and 'ti nvzo rialé to" piaj§rL'v-------7fher€ are several other a11ega'%.i@,giSj5 n2z:é.;e'--bj>..ih.e cdfxzplaéinant $133 the compiaim; to supp<3f--i::_ umder Sections; 277, 182:, 191, 192 %>'f_ The learned jurisdictionai M2:g:?.<:.t.§;ateLA'ha$ tak=::r;__<:%<)g.nizance and isssued pE'OCfL'SS agaizmt 1_ﬁ*:e: pr--é_3;i1;i::n'1<:r*,. gggainst which 11$ is in this prstitian. 'A $53. '"F?;ét.5;§6a1fneé cmjmse}. for' pﬁtéiioner Sm Ahamézd 'Ali Razigirizzan $ha.h5 m.=*i€;i*: "J€i'ht':'I'1'i€}:").Cf<';? <:c:}:2E.€:1"1:iS 'mat the »é:::»mg:;é§£§.§§:ant E1213 nlisuseé ihﬁ f3§'OC€SS sf Eawe E€c*:c<:2v<3rjy ::3f *~€a:s%_e:':<3EEc::Ee<i by {ha ;::e1é%;éar:<~':r is 22 civfﬁ E.%abil1ZE§;. sub:'ni.i:s; R}:

that paymﬁ-:r:t of beixzg civil 1ia¥:>iIit'y, criminal eaction c<:~1,z}.d not have been izlitiatrsd, The lézzarrieci Cmmsel referring to the Commentary an the C«:3&€ 0fCrim1'm1}. Pr{3c€dL2r<3. 19'}7i3, €.':I':: f:'T17f'3 bemiss of mfvzrence made in the commentafif ti} the d€i£.1i_6si<>'t1r.i:Te zhe case cf Kewal Krishan, 1980 SC 17580 while iSsuir1g process the court musg 136 very' V' '-Lo distinguish beégvs.-'(3€§} civil anti crimineii f shouid be allowezci to have recgugrse put pressum on his opponent for-vrs§:i':i$facfio§; for which a civil suit is the proper ' V Secc;>r1d.1y, he waulé complaint éiself the respshcic-z1t:"j;ha«§*fi.;3;-taé;5:d=.thabthé: tax payabée by {he _pe%;i£i(mefr_ §v0:°k of Rafbag Sahakaré Sakkafe Kzifi:1jVa:;€'Ni§;;é11%;i§ai. He submits the complaint ~,g:Gu1;1»~'§;01;have before {he Jud.§<:ia.1 Mzigistrate at '._B~e§ga: 5115.,f<.>v§i1ic "'Ea<:}<:<s ierriterial _}'ur%sdi<;ti<::n. 'A '§;;aSU}';7§:f3.':i€%lbIn§iS {hex wiiholzéi allowizzg 311%: §i:£ité(:»r:6r 35;:

'$35,-* :§1§:..t.éix;:_ in 318 magma? §::rc>vid(:*d uncisr Ehﬁi' §1'iCOI'I1{;' Tax ACE, »§5r'<,}C¥:3S»3--zii:i1'1g :ag2:.i:3.s%;: him 'witéz zhei: cwmpiaizét in the §v'Iagfés;'::"8.i:c='$ " '«'C<>i;_:'i is, '::"23v€:rsi?;'j{g =:}§§u:--;i'£<::;: 2111;? has mszlitsd in harcisﬁzig {<3 the {W }')€ti'LiC)1'§t'32'. He submits that t.h<3 TDS Ce1"t%;fic,ta%;e dézscribéci as fabricated was; i:»3sL:<~':c§ by the Mazlezgixlg Dirczctor 0f R:3.f%321g Sahaémri Sakééare Karkhami Niyzamiita. Therefc>$é5«;~-.§=3%;iti=i}z7:é.3j izannot be held liabie for its faisity, if exnyx ;-.

I. All zhese ccantentjons are =.Aseemin'g1yTsserjf'-im§§';£§:s:a§vé but on ciaser" examination of -Lite f<3.cd:'ds .::r1'riA 11at1,§':e"of", procesdings they are only wort§"1y 'c>_f >1'-?:_jc3c*'£j0'1"2 «_f{T::'r" the following YSEISOYISI Complainant, ur;'L£oL1:btéé§y.%. Q " " " :51 Com_peter:'t «:}ffi<:€:"/ 2iut3:1ori.i::-f,Vz}2*§::ific:dgifz. %;1:.ze"In_cé;:r;E§ Té£X '1'XCf. Secticm 277' of {he Ir1c:c>1/a'1't:V"'TIv';a2Av<.;A:'§3.§:1$£:iZ§.::V{er1'if1vdké:d"to.iﬁitéate prosezcutéen against the per:§Q:1 --. »Tfa1.Sxé'v---ézifbrmation {'0 {he depaytment. $c3cté<;)n 27"7..V_0'f the "fEf. g siatemerzt in any verifécatitm ..V.ar1}-' i'uv1s:----~mad<9 ihereunderﬁ <31' delivers an _$.(,'{.,Iv€I)'1;.1,'I'.1;§ﬁV"('3.7i."" statemeni whjrﬁq is false, and which he €31" b€1iEi§?'€'3S :0 be 58386} or dates no: believe A $0 he $312111 be p1;:z§s;hg:b1e,--

ii}. ii: a case whem the ameunt {sf taxi. whi<:E1 wmgzld V heave been evadfswé if ihe :=;{.a%:em<ér1%; GE" :;:<::cc}um. haii 233:'; szztitépiéci. as ZI"L,§€i', excesacé:-2 one hundred. E.h0z1san.c§ rupeas, wiih rigcarcsus i1n;)x'§sGr:me11t' for a term which shall not be less than six 1:1{>I1th$ but which may extzznd '£0 sevtm 3.15;-xzfss and with ﬁne;

{ii} in any Qther case, with rigc:):'<>1zs i.:r:;{J_1'§§sﬁ§*{§1fr§'t:.Ij.'t far a term which shall net. be 1e:$Vs__%§}3.:3.1i--._§;'}11f€:c3 monthg but which r1321}-f'Jc';§i:tCnC§ '$10 _th:9€é._};ea.:?3 I and Wit.h fimz."

8' Section ;2'?"7wA wouicé deal V;i£it§1 fa1S§fi(':é§.?L.if}'i"3 «Of of account or documents. In t§1.e'~vi.Ln"sI:ant case', --'Lh'é:, has" initiated proaecution agaginsi VT.-§'":€, "pé"Li...t§::)r1e1" 'Q3: specific ailegation, that the TDS c e~i*ti:"2Ca_t<}= =f:r<$£iig ec(i»» _by the petitioner along wiih his }R{i'4*.ﬁ,V1'I'?{f1S §§1 vféS'pf¥)nf${:'..4:tQ r1c§ti.:c¥~' issued to him for submisgign _o_f1 H_R:€Vt'¥.,1i".fiS' fC?§ fiSca1 yea: 199396 in Form N912}? we1"E;. f0 u_11d €ié:ii5ic._ia_."£icJ'i1 fmm the Syndicate Bank to be 332-1136 r;u1d C(>r}z;':£)Ctc:é£'{. They ham? placed x'<-Eﬁance on the as§t21¢t<é'r1*ser1Ei"'L'i?2"the fc>§rr§ {§f Estter sent by the Syndicatc: Bank can V'29V.V1 Q.i£:0.Q2.._&dié;<;1a_i.mir1g receipt ef the m.0;1ey as shown in 'she 'E'S'$ .g;'s:rt§viE'i::z}1':{2. Cerssecguerztlgz, {he department has <:ane::1ude:§ the? ;eg%£iiic):1€r has; f@rg;r::d$ <:m'1:::<3<:t«::<i, GI" izébricatzed {he TBS €{é5?;§§'%{f;i:te aétrazciéizg the c}:ff€m:<3 pzmisizabiéi LE.1':5éxE31" s€c:.i<>r:sE'}"'?, Eééiiﬁ 192 zmgi 'E9§§ sf EPC emii $z*:<:tis:>ms 2??) 2i'?"<2>(E} <::f téée Enctome Tax Act. In fact 11o¥;i(:e had bc:*€:r:. issurzd caiiézzg upon him ti) c-sxpiain ibis genuineness G? the document .befo2"€ initiation of §)1"{}St3C1,i?L§{)f1.

9 Even if xx.-13:63 {:0 hold tha; 3 purzieahabie under scctions 2,77, J §PC wili be too harsh in the Cif(;L?.{I1St&1i;§Gf§;$';..$;'€t the complaint make 012%; prima feiéﬁitcase vfof of the pezitiorier under A/Ct:

'1'§1e prémrequisiie ta} ini.tiaté is obtaining previous sanctig.:;;; :qqJ:V1'T?;§ ' £§;»oduc;:»:d aiong with the <.~om:§ia i»n: by the Commissioner of Incozrge Taxx iiiizzfizirv;sccti:tj'1n _27§3*{1.} of the Act. to prosecute the peti{i.0%';.§r . _ S':s71;:;é :.'i'é: ié--._§i"':;'E>znp§ai.nt by the Government Office:r;'his $i%m,rr1"v:§;t21f'cr:1£:m was not rxcgcesz-2313: to be aI'€COI;i3i4?.é'1.3< 'I{i1.{3T"€f()rCV;""f.£1€ <:<>m?1ai:m; submitted has been AI?'-';3€V"iS_'T;(i1T7€f§_:v'7tZ'%f~,7 £\%Eagis':.rat€: and process has been issmsci. 'E'Ei.€ aiiesgaéiizun macig in 31:: cizsmpiazint :;1'§d:;1;'at€%}i3}; make': (311: a: prime}, f.2>.<:ie case aallegirxgg . j_.c:}=r:1fmé;s;§.<)r: 03" é:h:-3 <>ffer1::<3 purzishzzbée Lirzdéér ihe pr<}v§si.:>:*1s referred to above. Whcthérr thff? a.1.Zegat§<>ns are t.r13.<3 cur faisc is a maiter cf inquiry. At the stage of teiking cc>gr:i:::§r£'ce regarding the stezt1;:it:v:*jy' vi01au'or1S presemgenzi by e2.u~t,h'{3ri_S'c£i, efﬁcer of the State, erzly subjéctive smisfacticyn .cV>_f.i§.:.:: 1é§:'1"nedT' Magistrats is enough without cjven ir=:s§sti::g«.u'p<)r:' ih.é'--3?.>£§<5rh statemem Gf {he c<>mp1ain2:n{.

As prescribed undez"    the
accused. appears he   for
dischazge. There  two    a complaint
under section ;'§:(}{';';J.€)f   'mode is, after

summoning {he   Shall call. upon the

compiairvgant id*i.ea_@ r;:v1<:§e'f1:;{: bcfore charge as prescribed under seCf_iQﬁ V24»? G§"{Tf;'¥?_7C;"'.a::1d consider whethez" such €3vi&.:313;:;3-. brGu'gh£' 9:1" E'€i* CC}§'d if remains unrczbuttczd, would '1<::aé3;::1.t::{5fwiC?;iio::; Tfiéit sstage has not yet. come; Thcrefcurej 131$' ~;:1f '_f;1'1€ petitioner ihai at this stage itseif the pr:>Cc::<3<iir1;gg;:.S11<:§u71;i be quashécé is misconceivsd aictéorz. %?'=-- From what is diSc12s$e:d above, the Eegiiimate " _é:{::1é::E'é.'§£;é<>3*': has ii} ':36 $1213: £31.63 a.E3<c'gg1i:§=:m$ in 'zihﬁ itéﬁmpieiiﬁf make: eat a prima {sass fez' initiatioxi cf prrzaazécstzticm. under the:

criméiwi law and no statemimt. in the complaint ggives 'tag any Civil ar:tior1 21$ Canvassed by the iearrwd j'C':}:1;1s__7€}5.;_. Paymertt of tax brfring statlztory liabiiity C(}'if€'3Iff.3<T.§,_t.21'Zf1VCViC'~1:'V'the Income Tax Act, is not 22 simple citfil 1iab'i}it'3.§ étsvits'-.;1vQ.r:?,___' paym<32i1t. resuits in penai actiorsand pt'QCéSS for,f.::r:£i've%,,/is'* too strirzgetzt. Et goes beycmci the""a;§1tbit of Ci.\_r_1'}°Aarj-3tic>'r7.a_ when the statute pF€SC1'ibE'S at "'p.t_1nish%t1'e't;L--t ' f:}i*-..contra¥§é;*:Vti0:'; 0f Encome Tax Act, it certainty isariot ta'éiVi1__é1E:t§fQ::.

12.. Regat:d13:.gf' the g s':*Coftc§V C'as.p§?.Ct relating to _;'"iJri.SdiCtior:, it c_:-:§rt.'L1rged'v.: Ejefors the learned Magistratz: at a;jp5;%Qpyia%;c _a.-ta,-fI.;<> wauld he cerrzpetent ta:

CO1'1S§d€1' the Vgfountits ft:g9rd-Lngiack of territoriai jiurisdicticn }<:<:epir1g_i3:1 mint? ttxetttﬁrotfitsgltans of S€i'C{i{)f1S 1?"? and 178 of [ 'VVf§;}ﬁ»t§ 'C_aZ}§"i§'€3§1'{§.O1'1 of the accuaed tézat he is not; the .?2Zl'£§F1'(>'t'f bf E258 ::<::'tif:£cat=:; Whig}: the tstérrzplairtatzt has _ ¢Oit'1StI'?.,1€<3§ as; faise, may be 2: valid defence ta hr: urgeé at the ' Ez'§§§}V§ﬁ3f'i€ii€ éiirzzéz, At this jL::§{:t'u.rt%, t'ht:'t*s3 is me gait': in Sag,-ring that in.iiiatic2:': of p1"{)St3CL1t§{}I} against ihfj p€tiU(}1":f3E" is un suStaiI1::1b§e.

14* .H<';':'_zC€3, fénfiizzgg no grgunci to €:3.t.4iéi"za§.;}x"z.if§';5: "3 petiticm, .1 am c<>r1Straé:"1:3d to reject' thc?»£sz:m1<:. A S:1h*'

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