Law:

Section:

Section 277, read with section 278 of the Income-tax Act, 1961, read with sections 120B, 193, 196 of the Indian Penal Code, 1860 - Offences and presecutions - Wilful attempt to evade tax etc. - Assessment year 1971-72 - ITO having completed assessment filed complaint against petitioners for offences under sections 277 and 278 of 1961 Act and, under sections 120B, 193 and 196 of IPC alleging that petitioners had entered into criminal conspiracy to fabricate books of account, produced false evidence and had wilfully given false statements etc. - Hence, instant petition was filed seeking to quash aforesaid complaint - Whether there can be parallel proceedings both in Civil and Criminal Courts - Held, yes - Whether since complaint made out a prima facie case against petitioners and moreover it was for complainant to establish offences against them before criminal Court, no case was made out for calling for records and quashing proceedings - Held, yes FACTS The ITO having completed the assessment filed complaint against the petitioners for offences under sections 277 and 278 of the Act and sections 120B, 193 and 196 of the Indian Penal Code, alleging that the petitioners entered into a criminal conspiracy to fabricate the books of account, produced false evidence and had willfully given false statements etc. On petition : HELD It was clear from the complaint produced before the Court that the same was independent of the assessment order passed by the ITO. It is well settled that there can be parallel proceedings both in civil and criminal courts. The proceedings before the income-tax authorities can be construed only as civil proceedings. Further, the complaint launched was independent of the order passed by the ITO and the order of the ITO had been quoted incidentally in the complaint. The complaint made out a prima facie case against the petitioner and, no doubt, it was for the complainant to establish the offences against the petitioners, before the criminal court. As it is, there was no case made out for calling for the records and quashing the proceedings. In the circumstances, the criminal miscellaneous petition was to be dismissed. Note :.Decision was against…

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