Mohit Maski Vs Income Tax Department (Karnataka High Court)
No Reporting Duty, No Criminal Default: Karnataka HC Quashes Prosecution u/s 277A as Section 285BA & Rule 114E Did Not Cover Co-operative Bank Retrospectively
Relevant Facts
In Mohit Maski v. Income Tax Department, the Karnataka High Court considered a petition u/s 482 Cr.P.C. seeking quashing of the complaint dated 29.03.2019, cognizance order dated 08.04.2019 & proceedings in C.C. No.130/2019 before the Special Court for Economic Offences, Bengaluru.
The petitioner was Chairman of SUCO Souharda Sahakari Bank Ltd. & arrayed as accused No.2. The Income Tax Department alleged that the Bank, its Chairman & CEO failed to furnish statements of financial transactions or reportable accounts contemplated u/s 285BA r.w. Rule 114E for FYs 2004-05 to 2015-16. According to the complaint, such failure attracted prosecution u/s 277A
Issue Before the Court
The central issue was whether a Souharda co-operative bank was legally obliged to submit annual information statements u/s 285BA r.w. Rule 114E for periods preceding the amendment that specifically included co-operative banks.
The connected issue was whether criminal prosecution could continue when the Bangalore ITAT, in penalty proceedings concerning the same Bank & identical reporting defaults, had already held that no such obligation existed for the pre-amendment period & that decision had attained finality.
