| Case ID |
f7e58b77-e46c-460c-b1fd-20f8d6468a47 |
| Body |
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| Case Number |
D-2741 of 1986 |
| Decision Date |
May 02, 1987 |
| Hearing Date |
|
| Decision |
The petitioners' application under section 482 of the Code of Criminal Procedure was dismissed as a prima facie case was established against them. The court held that the complaint could not be quashed as there was evidence suggesting a willful attempt to evade tax through false donations. The petitioners' claims that they were not given a reasonable opportunity to be heard before the prosecution was launched were also rejected, as they had submitted representations prior to the complaint being filed. The court emphasized that the existence of a prima facie case did not suffer from any infirmity, and the adequacy of the representations made by the petitioners would be a matter for the trial magistrate to consider. |
| Summary |
This case revolves around the allegations against General Sales (P.) Ltd. for making false donations to evade tax under the Income-tax Act, 1961. The Income Tax Officer filed a complaint alleging that the company made fake donations amounting to Rs. 25 lakhs to two trusts to claim tax deductions. The court found that a prima facie case existed against the petitioners based on the evidence presented. The judgment emphasized the importance of thorough investigations in tax-related offences and the necessity of upholding the principles of justice. This landmark case highlights the critical aspect of corporate responsibility in financial disclosures and compliance with tax regulations. It serves as a crucial precedent for similar cases in the future. Keywords such as 'Income-tax Act', 'false donations', 'tax evasion', and 'corporate responsibility' are vital for understanding the implications of this ruling. |
| Court |
Delhi High Court
|
| Entities Involved |
General Sales (P.) Ltd.,
Hastimal Sancheti Memorial Trust,
Poona Medical Foundation,
India Investment Co.,
State Bank of Hyderabad,
State Bank of Patiala
|
| Judges |
JAGDISH CHANDRA, J.
|
| Lawyers |
Ashok Desai,
Ravinder Narain,
S.K. Aggarwal,
D.K. Jain,
Anurag Chawla,
B.T. Singh
|
| Petitioners |
General Sales (P.) Ltd.
|
| Respondents |
Gopal Mukherjee, Income Tax Officer
|
| Citations |
1987 SLD 3166,
(1987) 166 ITR 77
|
| Other Citations |
J.P. Sharma v. Vinod Kumar Jain [1986] 3 SCC 67,
S. Harnam Singh Suri v. CBDT [1984] 145 ITR 159 (Delhi),
Gulab Chand Sharma v. H.P. Sharma, CIT [1974] 95 ITR 117 (Delhi),
M.L. Baira v. S. Ghosh [Criminal Appeal No. 202 of 1985],
Municipal Corpn. of Delhi v. J.B. Bottling Co. (P.) Ltd. [1975] Cr. LJ. 1148 (FB),
PNB Finance & Industries Ltd. v. Miss Gita Kripalani, ITO [1986] 157 ITR 385 (Delhi),
State of Maharashtra v. Jugmander Lal AIR [1966] SC 940,
Modi Industries Ltd. v. B.C. Gael [1983] 144 ITR 496 (All.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
276C(1),
278,
193/196
|