Learned Counsel Relied On Commissioner Of Income Tax,Mumbai v. Government Of Andhra Pradesh, Rep. By

HON’BLE SRI JUSTICE G.BHAVANI PRASAD CRIMINAL PETITION No.6053 of 2009 DATED:10.08.2009 Between: L.G.Varadarajulu, Chairman,M/s.Elgi Finance Limited, Elgi House,Trichy Road, Ramanathapuram,Coimbatore and others .. Petitioners And Government of Andhra Pradesh, rep.,by Sri Y.Vijaya Rao, CommercialTax Officer, near R.T.C. Bus Stand,Puttur, Chittoor District and another .. Respondents HON’BLE SRI JUSTICE G.BHAVANI PRASADCRIMINAL PETITION No.6053 of 2009 ORDER: Heard Sri Ch.Dhanamjaya, learned counsel for the petitionersand Sri A.V.Krishna Koundinya, learned Special Standing Counsel forCommercial Taxes for the first respondent and Sri K.Dhananjaya,learned Additional Public Prosecutor for the second respondent. The petitioners claim that the subject matter of T.A.Nos.1170,1177 and 1172 of 2000 before the Sales Tax Appellate Tribunal andthe subject matter of S.T.C.No.27 of 2006 on the file of the JudicialMagistrate of First Class, Nagari are one and the same. Thepetitioners claim that the assessment orders, based on which theprosecution is launched, are the subject matter of challenge in thepending appeals and, therefore, it will be in the interests of justice toawait the outcome of the appeals before proceeding further with thecriminal proceedings. Sri Ch.Dhanamjaya, learned counsel for the petitioners hasfairly conceded that the request for quashing the proceedingsaltogether may not be considered as of now, while the criminalproceedings may be stalled till the finalisation of the appeals beforethe Sales Tax Appellate Tribunal, leaving open the other questionsraised by him to be determined later in appropriate proceedings. Learned counsel relied on Commissioner of Income Tax,Mumbai v. Bhupen Champak Lal Dalal and another[1]wherein also,appeals under the Income Tax Act before the Commissioner or theIncome Tax Appellate Tribunal and prosecution for the offencespunishable under the same Act were simultaneously pending. TheHigh Court granted an interim order staying the proceedings in the criminal cases and the Apex Court, while noting that both theproceedings are independent proceedings with no impediment in lawfor the criminal proceedings to proceed even during the pendency ofthe proceedings under the Income Tax Act, observed that awholesome rule will have to be adopted in matters of this nature wherethe Courts have taken the view that when the conclusions arrived at bythe Appellate Authorities have a relevance and bearing upon theconclusions to be reached in the criminal case and therefore, thepostponement of the criminal proceedings will be in the interests ofjustice. Sri A.V.Krishna Koundinya, learned Special Standing Counselfor Commercial Taxes has sought for liberty to proceed with thecriminal proceedings no sooner than the appeals before the Sales TaxAppellate Tribunal are disposed of, which request is unexceptionable. Therefore, the further proceedings in S.T.C.No.27 of 2006 onthe file of the Judicial Magistrate of First Class, Nagari against thepetitioners herein shall stand stayed till the disposal of theT.A.Nos.1170, 1177 and 1172 of 2000 before the Sales Tax AppellateTribunal at Hyderabad and the trial Court can proceed further with thesaid case on information of the disposal of the said appeals by theSales Tax Appellate Tribunal, Hyderabad being placed before it by thefirst respondent. The Criminal Petition is ordered accordingly. ______________________ G.BHAVANI PRASAD, J 10[th] August 2009 KH 1(2001) 3 Supreme Court Cases 459