Vrindavan Pathak And Another Vs Union of India (Allahabad High Court)
The Allahabad High Court considered applications filed under Section 482 Cr.P.C. seeking quashing of a common order dated 25.02.2017 and the related criminal proceedings under Section 276-B of the Income Tax Act, 1961. The prosecution had been initiated by the Income Tax Department in relation to the alleged non-remittance of Tax Deducted at Source (TDS) amounting to Rs. 243 on an interest credit of Rs. 2,798.10 for the financial year 1979-80. The applicants contended that the proceedings had remained pending for approximately 36 years, were barred by limitation, suffered from procedural defects, and violated their right to a speedy trial under Article 21 of the Constitution.
The applicants also argued that continuation of the prosecution constituted an abuse of the process of law. Reliance was placed on judicial precedents to contend that service of notice under Section 156 of the Income Tax Act was mandatory before recovery steps could be taken.
The Income Tax Department opposed the applications and relied upon decisions holding that criminal prosecution under the Income Tax Act is independent of recovery, penalty, or interest proceedings. It was argued that there is no statutory requirement to issue a show-cause notice before launching criminal prosecution under Chapter XXII of the Income Tax Act and that pendency of proceedings under Sections 201(1) and 201(1A) does not bar prosecution under Section 276-B.
