PRAKASH KANHYALAL KANKARIYA vs. ASSISTANT COMMISSIONER OF INCOME TAX AHMEDNAGAR CIRCLE AHEMADNAGAR THR. PRASHANT BALASAHEB GANDHALE

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APPLN/677/2024HC BombayHCBM03005981202418 November 2024Author: HON'BLE SHRI JUSTICE Y. G. KHOBRAGADE2 pages
AI SummaryWithdrawn

What did the High Court hold?

The High Court granted leave to withdraw the criminal application. The Court observed that the prosecution was based on an assessment order that was under challenge before the Income Tax Appellate Tribunal. Therefore, it was deemed just and proper to keep the criminal proceedings (R.C.C. No. 259 of 2018) pending until the decision of the appeal. The application was disposed of as withdrawn. The applicant was granted liberty to pray for quashment of the complaint before the High Court if the Appellate Tribunal decides the appeal against him. The Court did not decide the merits of the criminal prosecution itself.

What were the facts?

The applicant, Prakash Kanhyalal Kankariya, filed a criminal application before the Bombay High Court, Aurangabad Bench. The application sought to withdraw the proceedings. The prosecution was initiated by the Assistant Commissioner of Income Tax, Ahmednagar, under Section 276C read with Section 278E of the Income Tax Act, 1961. The basis of the complaint was an assessment order passed by the Income Tax Department. However, this assessment order was under challenge in an appeal pending before the Income Tax Appellate Tribunal. The criminal proceedings were R.C.C. No. 259 of 2018.

What were the issues?

1. Whether the criminal prosecution under Section 276C read with Section 278E of the Income Tax Act, 1961, should be stayed or quashed pending the decision of the appeal against the underlying assessment order before the Income Tax Appellate Tribunal. Assessee's Contention: The learned counsel for the applicant sought leave to withdraw the application on the ground that the subject matter of the complaint is based on an assessment order which is under challenge in a pending appeal before the Income Tax Appellate Tribunal. Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 276C,Section 278E

AI-generated summary — verify with the full judgment below

32(E)-Cr-Apln-677-2024.odt IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT AURANGABAD CRIMINAL APPLICATION NO. 677 OF 2024 PRAKASH KANHYALAL KANKARIYA VERSUS ASSISTANT COMMISSIONER OF INCOME TAX AHMEDNAGAR CIRCLE AHEMADNAGAR THR. PRASHANT BALASAHEB GANDHALE .… Mr. R. R. Chandak, Advocate for the Applicant Mrs. Kalpalata Patil Bharaswadkar, APP for Respondent – State .… CORAM : Y. G. KHOBRAGADE, J. DATE : 18.11.2024 PER COURT :-

1.

On instructions, the learned Counsel for the Applicant seeks leave to withdraw the Application on the ground that the subject matter of the complaint initiated by the complainant Income Tax Department is based on the order passed by the Income Tax Tribunal. However, said assessment order is under challenge in Appeal, which is pending. Since the Respondent Income Tax Authority filed a proceeding for prosecution of the present Applicant / accused for the offence punishable under Section 276C read with Section 278E of the Income Tax Act, which is under consideration before the Income Tax Appellate 1 of 2 2024:BHC-AUG:27143

(( 2 )) 32(E)-Cr-Apln-677-2024 Authority, therefore, it would be just and proper to keep the proceeding of R.C.C. No.259 of 2018 sine die till decision of the Appeal.

2.

Leave granted. The Application is disposed of as withdrawn.

3.

It is made clear that if the Appellate Court decides the Appeal against the present Applicant, in that event, the Applicant will be at liberty to pray for quashment of the complaint before this Court. [ Y. G. KHOBRAGADE, J. ]

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