Crl.p/2468/2014 Of Reid & Taylor (India) Limited v. Narayana Reddy

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 30 DAY OF APRIL 2014 BEFORE, THR HON’BLE MR.JUSTICE S.N.SATYANARAYANA CRL.P.No.2468 /201 BBRIWEKEN 1.REID & TAYLOR (INDIA) LIMITED A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS OFFICE AT: A COMPANY INCORPORATED UNDER THE COMPANIES ACT, 1956 HAVING ITS OFFICE AT: 503/504, SHAH SULTAN COMPLEX, 5 FLOOR, CUNNINGHAM ROAD, BANGALORE-560 052, REPRESENTED BY ITS MANGAING DIRECTOR, SRI NITIN S. KASLIWAL S/O. SRI SHAMBHU KUMAR S.KASLIWAL AGED ABOUT 53 YEARS. 2.SRI NITIN S. KASLIWAL, S/O. SRI SHAMBHU KUMAR S.KASLIWAL, AGED ABOUT 53 YEARS, MANGAING DIRECTOR OF M/S. REID & TAYLOR (INDIA) LTD, WORKING AT S/O. SRI SHAMBHU KUMAR S.KASLIWAL, AGED ABOUT 53 YEARS, MANGAING DIRECTOR OF M/S. REID & TAYLOR (INDIA) LTD, WORKING AT 503/504, SHAH SULTAN COMPLEX, 5TH FLOOR, CUNNINGHAM ROAD, BANGALORE-560 052. 3.SRI ANIL KUMAR CHANNA, S/O. SRI PRITHVI CHANNA, AGED ABOUT 65 YEARS, NON-EXECUTIVE DIRECTOR OF M/S. REID & TAYLOR (INDIA) LTD., WORKING AT 503/504, SHAH SULTAN COMPLEX, 5TH FLOOR, CUNNINGHAM ROAD, BANGALORE-560 052. 4. SRI VIJAY G. KALANTRI, S/O. SRI GOVERDHANDAS D. KALANTRI, AGED ABOUT 65 YEARS, NON-EXECTUIVE INDEPENDENT DIRECTOR OF M/s. REID AND TAYLOR (INDIA) LTD. WORKING AT 503/504, SHAH SULTAN COMPLEX, 5TH FLOOR, CUNNINGHAM ROAD, BANGALORE-560 052. ... PETITIONERS (BY SRI SURESH KRISHNA, ADV., FOR VENKATESH MURTHY G.R., ADV.,) AND THE INCOME-TAX DEPARTMENT BY INCOME TAX OFFICER (TDS) WARD-18(2), HMT BHAVAN, BANGALORE-560 032. REP. BY SRI C.V. NARAYANA REDDY. ... RESPONDENT CRL.P FILED U/S.482 CR.P.C BY THE ADVOCATE FOR THE PETITIONERS PRAYING THAT THIS HON'BLE COURT MAY BE PLEASED TO QUASH THE PROCEEDINGS IN C.C.No.210/2013 PENDING ON THE FILE OF SPL. COURT FOR ECONOMIC OFFENCES, BANGALORE, PETRS./ACCUSED NO.1 TO 4 ARE CONCERNED. THIS CRL.P COMING ON FOR ADMISSION THIS DAY, THE COURT MADE THE FOLLOWING: ORDER Accused Nos.1 to 4 in C.C. No.210/2013 on the fileof Special Court for Economic Offences, Bangalore, havecome up in this petition seeking quashing of thecomplaint, which is initiated for the offence punishableunder Section 276B read with Section 278B of the Income|Tax Act, 1961, (for short, |the Act‘) in respect of non-deposit of Tax Deducted at Source (TDS) while makingpayment to employees of the Company. oD Petitioners 1 to 4 before this Court are none.other than the Company and its Directors, who areaccused Nos.1 to 4 in C.C. No.210/2013. In support ofhis prayer for seeking quashing of the proceedings,learned counsel, Sri Sireesh Krishna, would bring to thenotice of this Court that even prior to the notice beingissued to accused Nos.1 to 4 in the said proceedings, theentire amount was deposited by Company along with interest for delayed payment. He also brings to the noticeof this Court the provisions of Section 279(2) of the Act,wherein it is provided that if a person is charged with anoffence punishable under Sections 276B and 278B, he isat liberty to seek compounding of the same. In view of thesame, he submits that the entire proceedings in C.C.No.210/2013 pending on the file of the Special Court(Economic Offences) could be disposed of by this Court.However, considering the fact that petitioners 2 to 4, whoare accused Nos.2 to 4 in C.C. No.210/2013 have tailed toappear before the Special Court (Economic Offences) on03.04.2014 pursuant to the notice issued to them and thesame has resulted in Special Court passing an order forissuance of non-bailable warrant against them on.03.04.2014, even before the said order is recalled, the)question of quashing proceedings in C.C. No.210/2013.does not arise. Accordingly, petition is disposed of with liberty topetitioners 2 to 4 to personally appear before the SpecialCourt(EconomicOffences),Bangalore,1nC.C., Accordingly, petition is disposed of with liberty topetitioners 2 to 4 to personally appear before the SpecialCourt(EconomicOffences),Bangalore,1nC.C., No.210/2013 on 15.05.2014 or on any day earlier to that.On the day when petitioners 2 to 4 herein appear beforethe SpecialCourt(EconomicOffences),OT]thelrproduction of certified copy of this order and filingnecessary application seeking recall of the order dated03.04.2014, the learned Magistrate of Special Court(Economic Offences) may allow such application and recall the order dated 03.04.2014, wherein non-bailable warrantis ordered to be issued against accused Nos.2 to 4,petitioners 2 to 4 herein. Thereaiter, by recording that theentire amount having already been paid by petitioners 1 to4 along with interest, in exercise of the power vestedunder Section 279 of the Income Tax Act providing forcompounding of the same, the proceedings pending inC.C. No.210/2013 may be closed on filing of appropriateapplication by petitioners 2 to 4 in that behalf. Smea Sd/- JUDGE| SNSJ :1/.06.2014| Crl.P.No.2468/2014 ORDER ON ILA.IV QE 2014 This petition was disposed of by order dated30.04.2014 reserving liberty to petitioners herein toapproach Special Court (Economic Offences), Bangalore,to seek compounding of the offence alleged againstpetitioners, accused Nos.1 to 4 in C.C. No.210/2013. oD This»day,|learnedcounsel,Sri|Jeevan Neeralagi, appearing for Income Tax Department has.moved an application in |.A.I]J/2014 seeking clarificationin the order dated 30.04.2014. 3.|Heard the learned counsel for petitioners as)well as respondent — applicant in LA.IV/2014. Accordingto the respondent, Income Tax Department, the offencealleged against petitioners, which is sought to becompounded under Section 279 of the Income Tax Act,1961, can be compounded only betore the Chief)Commissioner of Income Jax or the Director General ofIncome Tax. Therefore, the order so far as it relates to) reserving liberty to petitioners herein to approach theSpecialCourt(EconomicOffences),Bangalore|for.compounding of the said offence is required to be clarifiedby directing the petitioners herein to appear before theChiet Commissioner of Income Tax or the Director General|ot Income Tax for the said relief. 4The submission of learned counsel for Income.Tax Department is placed on record. Accordingly, theorder dated 30.04.2014 is clarified in directing petitioners1 to 4 to either approach the Chief Commissioner ofIncome Jax or the Director General of Income Tax for.seeking compounding of offence alleged against them inC.C. No.210/2013. — With the aforesaid clarification, application in|I.A.IV/2014 is disposed of. SItl Sd/-.JU DGE