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Section 269SS, read with sections 276DD and 278B, of the Income-tax Act, 1961 - Deposits - Mode of taking/accepting - Whether partners who are not responsible for work and conduct of assessee-firm, can be summoned for offence punishable under section 269SS - Held, no FACTS The ITO filed a complaint before the Chief Judicial Magistrate, alleging that the petitioner-partners of the assessee-firm had taken a loan in cash and not through account payee cheques/bank drafts and thus, had committed an offence punishable under section 269SS. On the basis of the complaint, the petitioners were summoned by the Chief Judicial Magistrate. The petitioners filed instant petition for quashing the complaint and the summoning order. HELD There were no allegations against petitioner Nos. 5 and 6. A perusal of the petition showed that the other partners were responsible for the work and conduct of the partnership firm. [Para 6] In that view of the matter, the complaint and the summoning order against petitioner Nos. 5 and 6 were quashed. However, all the other petitioners shall face trial before the Chief Judicial Magistrate. [Para 7] The instant petition stood allowed partly. [Para 8] CASE REFERRED TO Parmeet Singh Sawney v. Dinesh Verma, ITO [1988] 169 ITR 5/ 36 Taxman 122 (Delhi). S.C. Chhabra for the Petitioner. Dr. N.L. Sharda for the Respondent. JUDGMENT Ashutosh Mohunta, J. - This is a petition under section 482 of the Code of Criminal Procedure, for quashing the complaint annexure P1 dated January 25, 1991, filed under section 276DD read with section 278B, of the Income-tax Act, 1961, and order dated March 25, 1991, annexure P2, passed by the Chief Judicial Magistrate, Ferozepur, vide which the petitioners were summoned in this case. 2. The brief facts of the case are that the complainant filed a complaint annexure P1, before the Chief Judicial Magistrate, Ferozepur, alleging that the petitioners, who are running the firm in the name of Dua Rice Mills at Fazilka, took a loan of Rs. 1,20,000 on different dates from two persons, namely, Angrej Singh and Smt. Ajit Kaur. That amount was taken in cash and not through account payee cheques/bank drafts. Thus, according to the…

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