Criminal Revision Petition No. 294 of 1987. Case: S.N. Vadhyar and Sons and Ors. Vs Income Tax Officer and Anr.. High Court of Kerala (India)
| Case Number | Criminal Revision Petition No. 294 of 1987 |
| Counsel | For Appellant: K. Kunhirama Menon and R. Raya Shenoi, Advs.and For Respondents: M.K. Abdulla, Adv. for respondent No. 1 and Ayshe Youseff, Adv. for respondent No. 2 |
| Judges | K.G. Balakrishnan, J. |
| Issue | Income Tax Act, 1961 - Sections 277, 278, 278B; Indian Penal Code 1860, (IPC) - Sections 193, 196; Code of Criminal Procedure, 1973 (CrPC) - Section 195(1) |
| Citation | 1991 (189) ITR 692 (Ker) |
| Judgement Date | January 08, 1991 |
| Court | High Court of Kerala (India) |
Judgment:
K.G. Balakrishnan, J.
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This revision is directed against the conviction and sentence entered against accused Nos. 1 to 3 in C. C. No. 5 of 1985 on the file of the Additional Chief Judicial Magistrate (Economic Offences), Ernakulam. The first accused is a partnership firm and accused Nos. 2 and 3 are its partners. All the three accused have been convicted for the offence punishable under Section 277 of the Income Tax Act and Sections 193 and 196 of the Indian Penal Code. For the offence under Section 277 of the Income Tax Act, accused Nos. 2 and 3 are sentenced to undergo rigorous imprisonment for six months. No separate sentences are awarded to these accused for the offences under Sections 193 and 196, Indian Penal Code.
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The case in short is as follows: The first accused firm has been engaged in the business of purchase and sale of iron and steel materials. The firm was assessed to Income Tax and the second accused filed exhibit P-3 return for the assessment year 1971-72 disclosing an income of Rs. 1,54,194.40. The return was submitted to the Income Tax Officer, A-Ward, Ernakulam. Later, this file was transferred to the Special Circle, Ernakulam. The Income Tax Officer attached to the Special Circle, Ernakulam, conducted a search in the business premises of the accused on July 27, 1972. The houses of the partners of the first accused and the business premises of one Narayanaswamy Iyer were also searched and books of account and other records were seized. The search and other investigations conducted by the complainant disclosed that there were irregularities in certain business transactions and the facts stated in exhibit P-3 return were not true. Therefore, steps were initiated to prosecute the accused.
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We are concerned with only a few transactions. It was alleged by the complainant that two wagon loads of M. S. rods purchased from Ganesh Exports and Imports Company, Calcutta, by the accused were not shown in their accounts. The two wagon loads of M. S. rods were consigned under exhibits P-14 and P-17 railway receipts. The complainant's case is that these goods were sent in the name of a fictitious person, namely, Abraham, contractor, though, in fact, the goods were purchased by the first accused firm. Secondly, three purchases made by the accused firm, Hardware and Mills Stores, Bombay, under exhibit 25(a) invoice dated May 21, 1970, exhibit P-25(b) invoice dated February 20, 1971, and exhibit P-29(a) invoice dated May...
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