HC denies anticipatory bail in alleged transfer of Income tax assessment under a criminal conspiracy

Akash Agarwal Vs Union of India through CBI (Jharkhand High Court)

Apprehending his arrest, petitioner- Akash Agarwal @ Akash Aggarwal has moved this Court for grant of privilege of anticipatory bail in connection with RC AC1 2018A 0006 [corresponding to R.C.06(A)/2018-D] registered under Section 120-B of the Indian Penal Code read with Sections 7,8, 12 and 13(2) read with 13(1)(d) of the Prevention of Corruption Act, 1988.

Heard the parties.

The prosecution case in brief is that under a criminal conspiracy the income tax assessment files were transferred from Kolkata to Ranchi in league with Tapas Kumar Dutta who was Principal Commissioner of Income Tax, Ranchi during the year 2016-17 for providing undue favour in the reassessment order. This conspiracy was hatched and executed by Tapas Kumar Dutta, Bishwanath Agarwal and Santosh Kumar Choudhary and others. IO of the case has submitted chargesheet and cognizance has been taken. During investigation it has come to light that this petitioner was a close associate of – accused Bishwanath Agarwal and Santosh Shah. This petitioner arranged address at Hazaribag so that book of accounts and business operations of the assessee companies could be transferred to Hazaribagh. The owner of the said premises very close relatives of the present petitioner in which the companies never functioned from the said address. It has come to light that it was the petitioner who was instrumental in filing applications of some of the companies before Income Tax Authorities at Kolkata for the transfer of PANs from Kolkata to Hazaribag.

It is submitted by learned counsel for the petitioner that he is neither the assessee nor the Public Servant who are said to be the beneficiaries of the said transfer of PANs. He has been implicated in this case on the basis of recorded conversation with the accused Bishwanath Agarwal in call nos. 22, 30, 70 and 71 of the mobile no.9830041787 and had charged unreasonably very high fee for being authorised representative of the companies. It is alleged that he acted as a middleman and Tax Consultant and acted as between the assesses and the Income Tax Authority involved in the said offence. He submits that Bishwanath Agarwal and Santosh Shah had been alleged to be close connections with Tapas Kumar Dutta, the then Principal Commissioner of Income Tax, Ranchi and Hazaribagh, did rest of the setting with the public servant as it happened in other cases registered by the CBI in which investigation is going on. He also submits that the accused persons in RC 03(A)/2017-D have been granted anticipatory bail by a coordinate Bench of this Court in A.B.A. No.1045 of 2018 and other matters, vide order dated 08.05.2018. It is submitted that this petitioner is in no way connected with any of the companies whose files are said to have been transferred from court at Ranchi in expectation of favourable orders. Petitioner was named in RC 03(A)/2017-D in which he was not charge-sheeted. The petitioner had been granted anticipatory bail by a common order dated 8.5.2018 in first FIR (R.C. 03(A)/2017-D.

Mr. Anil Kumar, learned A.S.G.I. appearing for the CBI submits that the petitioner worked as authorised representative of five assessee companies given by Bishwanath Agarwal. The petitioner conspired with other accused persons which subsequently resulted in huge relief in tax liability/penalties to the assessee companies. He further submits that in call no.70 of mobile no.9830041787, the conversation between Bishwanath Agarwal and the petitioner was there wherein the petitioner was saying that he had paid for order and the work done but he has not taken name of any person to whom he had given the money. He further submits that there was larger conspiracy and there are allegations of influencing the then Principal Commissioner of Income Tax, Ranchi and in that view of the matter, the benefit of anticipatory bail may not be provided to the petitioner.

It is further submitted that para 16.6 of the charge-sheet clearly stipulates conspiracy part of the petitioner. He further submits that a coordinate Bench of this Court has rejected the anticipatory bail applications filed by the accused person being A.B.A. No.3075 of 2022 in connection with R.C.05(A)/2018-D and A.B.A. No.2317 of 2022 in connection with R.C. 07(A)/2018-D and in that view of the matter, the benefit of anticipatory bail may not be provided to the petitioner If CBI is believed, not only birds migrate from harsh climate zone to warmer one, but some tax payers also do so. Prosecution case is about transfer of 17 companies from Kolkata to Ranchi/Hazaribagh with migration of PAN, by manufacturing documents under a conspiracy with Principal Income Tax Commissioner, Ranchi Tapas Kumar Dutta, and Bishwanath Agarwal and Santosh Chowdhary @ Santosh Shah both Kolkata based business men and Entry Operators.

Considering the gravity of offence, I am not inclined to enlarge the petitioner on anticipatory bail. Accordingly, his prayer for anticipatory bail is hereby rejected. Petitioner is directed to surrender before the Court below within two weeks.