Income Tax Appeal Against Inadequate Sentence Not Maintainable: Karnataka HC

DCIT Vs Murlikrishna Reddy (Karnataka High Court)

The Karnataka High Court dismissed appeals filed by the Income Tax Department challenging the inadequacy of sentences imposed by the Special Court for Economic Offences, Bengaluru, in C.C. No.75/2013 and C.C. No.99/2014. The Court considered the preliminary issue of maintainability and noted that the same question had already been decided by a Coordinate Bench in The Deputy Commissioner of Income Tax Vs. M/s. Genewa Industries Limited (A. No.926/2021). Relying on that judgment, the Court held that appeals filed by the Income Tax Department against inadequacy of sentence are not maintainable. However, it clarified that if the concerned party approaches the Trial Court or Sessions Court, the period spent in prosecuting the matter before the High Court and until its disposal shall be taken into account. Consequently, the appeals were dismissed, and all pending applications arising from the proceedings were also disposed of.

FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT

These appeals are filed by the Income Tax Department against inadequacy of the sentence dated 05.11.2019 passed in C.C.No.75/2013 and C.C.No.99/2014 respectively by the Presiding Officer, Special Court for Economic Offences, Bangalore.

2. Heard learned counsel for appellant on maintainability of the appeals.

3. Maintainability of the appeals had come up for consideration before this Court in the case of “The Deputy Commissioner of Income Tax Vs. M/s. Genewa Industries Limited” passed in A.No.926/2021 by the Co-Ordinate Bench of this Court.

4. On careful reading of judgment of the Co-ordinate Bench of this Court, it is evident that the appeals filed by the Income Tax Department against inadequacy of the sentence is not maintainable.

5. In case, if, the party approaches the Trial Court/Sessions Court, it is made clear that, the period which had been spent to approach this Court and its disposal has to be reckoned.

6. In view of dismissal of these appeals, all pending applications are disposed of.