B. Siva Vs DCIT (Madras High Court)
The Madras High Court considered two criminal original petitions challenging separate orders dated 20 February 2025 passed by the Additional Chief Metropolitan Magistrate (Economic Offences-I), Egmore, Chennai, whereby cognizance was taken of complaints filed by the Income Tax Department under Sections 277A and 278 of the Income-tax Act, 1961, and summons were issued to the accused.
The proceedings arose after a search conducted by the Income Tax Department in respect of another assessee allegedly revealed inflated bottle purchases through bogus invoices issued by various firms, including the accused. According to the Department, after receiving payment under the invoices, the accused allegedly returned the corresponding amounts in cash after deducting commission. A search was thereafter conducted against the accused on 15 June 2022. After completing the statutory formalities under the Income-tax Act, including issuance of a show cause notice and obtaining sanction from the Principal Commissioner of Income Tax under Section 279(1), complaints were filed before the Trial Court under Sections 277A and 278 of the Income-tax Act. The Trial Court took cognizance on 20 February 2025 and ordered issuance of summons.
The accused challenged the orders on the ground that the Trial Court had taken cognizance without affording an opportunity of hearing as mandated by the first proviso to Section 223(1) of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS), which provides that no cognizance of an offence shall be taken without giving the accused an opportunity of being heard.
