Ravichandiran v. The Assistant Commissioner Of Income Taxcorporate Circle – 6(I), Aayakar Bhawan

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED 05.10.2018 CORAM THE HONOURABLE Mr.JUSTICE P.N.PRAKASH CRL.O.P.No.23649 of 2018 and Crl.M.P.Nos.13315 and 13319 of 2018 1.M/s.Sai Logistics Private Limited, represented by its Managing Directors, Ms.Lily Ignesh Mary & Mr.Ravichandiran, No.7, Morrison, First Street, Cement Road, Alandhur, Chennai 600 016. 2.Lily Ignesh Mary 3.Ravichandiran Vs .. Petitioners The Assistant Commissioner of Income TaxCorporate Circle – 6(i), Aayakar Bhawan,No.121, Mahatma Gandhi Road,Chennai 600 034. .. Respondent Criminal Original Petition filed under Section 482Cr.P.C., praying to call for the records of the docket orderdated 25.07.2018, made in Crl.M.P.No.1504 of 2018 in C.C.No.9 of2018 on the file of the Additional Chief Metropolitan MagistrateEconomic Offence – II, at Egmore at Allikulam, Chennai and quashthe same and in consequence, discharge the petitioners. For Petitioners : Mr.S.Senthilnathan O R D E R The petitioners are the accused in C.C.No.9 of 2018before the Additional Chief Metropolitan Magistrate EconomicOffence – II, at Egmore at Allikulam, Chennai for the offenceunder Section 276 CC of the Income Tax Act on the privatecomplaint lodged by the Income Tax Department. 2.It is the case of the department that for theAccounting year ending 31.03.2013, the petitioner company wasrequired to pay Income Tax for the assessment year 2014 – 2015and that he had failed to file the return of income on time.Hence, the prosecution. https://hcservices.ecourts.gov.in/hcservices/ 3.On receipt of summons, the petitioners filedCrl.M.P.No.1504 of 2018 in E.O.C.C. No.9 of 2018 under Section245 (2) Cr.P.C for discharge which has been rejected by theTrial Court by order dated 25.07.2018, challenging which, thepetitioners are before this Court. 4.Heard Mr.S.Senthilnathan, learned counsel appearing forthe petitioners who placed strong reliance on Section 245 (2)Cr.P.C and contended that even in a case where the provisions ofChapter XIX B applies, the accused can be discharged underSection 245 (2) Cr.P.C without examining the witnesses. 5.There cannot be any quarrel with the said propositionof Mr.S.Senthilnathan. However, such a power can be exercisedonly where on the face of the complaint, if the Court comes tothe opinion that the allegations are groundless. It is a tritelaw that even a strong suspicion is enough to frame the chargeas held by the Hon'ble Supreme Court in Central Bureau of IndiaVs. K.Narayana Rao (2012) 9 SCC 512. 6.Mr.S.Senthilnathan contended that the petitioners werenot liable to pay any Income Tax and that it is the Income TaxDepartment which has to refund certain amounts to the petitionercompany. Therefore, the very non-filing of the return cannot bea reason for launching a prosecution against the petitioners. 7.In the opinion of this Court, this is a disputedquestion of fact which cannot be gone into in proceedings underSection 245 (2) Cr.P.C. On a reading of the complaint of theIncome Tax Department, there are prima facie materials to takecognizance of the offence and issue process which the TrialCourt has done. There are no materials to exercise powers underSection 245 (2) Cr.P.C, to discharge the accused at thethreshold in this case. It is always open to the petitioners toplead for discharge under Section 245(1) Cr.P.C, after theprosecution witness is examined. 8.With the above liberty, this petition is closed. Therespondent is directed to produce their witnesses forexamination before the Trial Court within a period of three (3)months from the date of receipt of a copy of this order.Consequently, connected Miscellaneous Petitions are closed. Sd/- Deputy Registrar //True Copy// gsa Sub Assistant Registrar To 8.With the above liberty, this petition is closed. Therespondent is directed to produce their witnesses forexamination before the Trial Court within a period of three (3)months from the date of receipt of a copy of this order.Consequently, connected Miscellaneous Petitions are closed. Sd/- Deputy Registrar //True Copy// gsa Sub Assistant Registrar To 1.The Assistant Commissioner of Income Tax Corporate Circle – 6(i), Aayakar Bhawan, No.121, Mahatma Gandhi Road, Chennai 600 034. Corporate Circle – 6(i), Aayakar Bhawan, No.121, Mahatma Gandhi Road, Chennai 600 034. 2.The Public Prosecutor, High Court, Madras. High Court, Madras. +1cc to Mr.S.Haja Mohideen Gisthi, Advocate, S.R.No. 68760+1cc to Mr.S.Senthil Nathan, Advocate, S.R.No. 68718 CRL.O.P.No.23649 of 2018and Crl.M.P.Nos.13315 and 13319 of 2018GN(22/10/2018)