Crl Op/30544/2019 Of Audi Munusamy v. Income Tax Officer

IN THE HIGH COURT OF JUDICATURE AT MADRAS THE HONOURABLE MRS.JUSTICE T.V.THAMILSELVI Audi Munusamy ...Petitioner Income Tax Officer,Non Corporate Ward-15(1),121, Mahatma Gandhi Road,Chennai - 600 034. PRAYER : Criminal Original Petition is filed under Section 482of Cr.P.C., praying to call for the records in E.O.C.C.No.394 of2018, on the file of the Additional Chief MetropolitanMagistrate, EO-II, Egmore, Chennai and quash the same. This Criminal Original Petition has been filed seeking tocall for the records in E.O.C.C.No.394 of 2018, on the file ofthe Additional Chief Metropolitan Magistrate, EO-II, Egmore,Chennai and quash the same. 2. The case of the petitioner is that the petitioner hereinis only the power agent and he was nothing to do with the saleof the property and entire sale consideration was received.The petitioner contending that the petitioner had filed returnof income belatedly on 24.12.2015 for the assessment year 2012-13 admitting a total income of Rs.2,12,250/-. Since thepetitioner did not offer to tax any profit/gain from the sale ofan immovable property, the assessment was reopened and completedunder Section 143(3) r/w Section 147 dated 27.12.2016 bytreating the entire sale consideration of Rs.8,00,000/- received https://hcservices.ecourts.gov.in/hcservices/ by him as business receipts assessable under the head ofbusiness income and thus quantifying a demand ofRs.5,08,20,440/-. The petitioner submits that the assessmentorder along with notice of demand was served on the accused on31.12.2016. Further, penalty order Under Section 271 A of theIT Act, 1961, was issued to the petitioner on 30.06.2017 raisinga demand of Rs.25,000/-. The petitioner submits that he hadpreferred an appeal against the assessment order under Section143(3) r/w Section 147, dated 27.12.2016 and the same wasdismissed on the notion that the entire income was classifiedunder the head "Capital gains". Thus after giving effect to theorder of CIT(A), the demand was quantified as Rs.5,08,45,000/-and such failure to pay tax constitutes an offence underSection 276C(2) of the Income Tax Act, 1961. 3.Now, the petitioner submits that the presentE.O.C.C.No.394 of 2018 was filed against it is unnecessarilyfrivolous litigation and it is not liable to be prosecuted.Hence, he prayed to quash the proceedings since the respondenthas not initiated proceedings against the correct personsincluding Banumathi (Principal) and Rajesh kumar (power agent) . 4.But the respondent raised his objection stating thatalready based upon the entire investigation came to understandthat there is a sum of Rs.5,08,45,000/- which was classifiedunder the head "capital gains". After giving effect to theorder of CIT (A), the demand was quantified as Rs.5,08,45,000/-and such failure to pay tax constitutes an offence under Section276C(2) of the Income Tax Act, 1961. 5.On seeing the nature of allegation levelled against thepetitioner and others which cannot be quashed in the instantcase, for the reason that there is a sum of Rs.5,08,45,000/-tax is included in this matter. A detailed enquiry is requiredin support of the oral evidence and if the petitioner is havingany such defence, he has to raise the same before the trialCourt. 6.Accordingly, this Criminal Original petition is dismissed.Consequently, connected miscellaneous petitions are closed. Sd/- Assistant Registrar(CS-VIII) //True Copy// Sub Assistant Registrar ub https://hcservices.ecourts.gov.in/hcservices/ To 1. The Additional Chief Metropolitan Magistrate, EO-II, Egmore, Chennai. EO-II, Egmore, Chennai. 2. Income Tax Officer, Non Corporate Ward-15(1), 121, Mahatma Gandhi Road, Chennai - 600 034. Non Corporate Ward-15(1), 121, Mahatma Gandhi Road, Chennai - 600 034. 3. The Public Prosecutor, High Court,Madras. High Court,Madras. +1cc to M/s.D.Manimaran, Advocate, S.R.No.65882 6.Accordingly, this Criminal Original petition is dismissed.Consequently, connected miscellaneous petitions are closed. Sd/- Assistant Registrar(CS-VIII) //True Copy// Sub Assistant Registrar ub https://hcservices.ecourts.gov.in/hcservices/ To 1. The Additional Chief Metropolitan Magistrate, EO-II, Egmore, Chennai. EO-II, Egmore, Chennai. 2. Income Tax Officer, Non Corporate Ward-15(1), 121, Mahatma Gandhi Road, Chennai - 600 034. Non Corporate Ward-15(1), 121, Mahatma Gandhi Road, Chennai - 600 034. 3. The Public Prosecutor, High Court,Madras. High Court,Madras. +1cc to M/s.D.Manimaran, Advocate, S.R.No.65882 +1cc to M/s.N.Baskaran, Public Prosecutor for Income Tax, S.R.No.65962 KSM(CO)RGA(10/01/2022) Crl.O.P.No.30544 of 2019