S.R.S. Projects and 4 others Vs DCIT (Telangana High Court)
This Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short ‘Cr.P.C.’) by the petitioners/A1 to A5 to quash the proceedings against them in C.C.No.268/2017 on the file of the Special Judge for Economic Offences at Hyderabad. The offences alleged against them are under Sections 276(c)(2) read with Sections 278 B & 278 E of the Income Tax Act, 1961.
2. Learned Counsel appearing for the petitioners would submit that the income-tax authorities have found tax evasion as far as petitioners are concerned. He further submits that a compounding application in accordance with Section 279(2) of the Income-tax Act, 1961 was made on 03.12.2019 and it is pending adjudication by the Chief Commissioner of Income-tax. In the event of acceptance of the compounding application, the Act prescribes closure of the criminal case.
3. In the said circumstances, this Court deems it appropriate to stay all further proceedings against the petitioners in C.No.268/2017 on the file of the Special Judge for Economic Offences at Hyderabad, until disposal of the compounding application pending before the Chief Commissioner of income-tax. On the basis of the outcome of the compounding application, the trial can be proceeded against these petitioners in the Special Court.
4. Accordingly, the Criminal Petition is disposed off.
Miscellaneous applications pending, if any, shall stand closed.
