Income Tax Department Vs Srikar Reddy Vempati (Karnataka High Court)
In Income Tax Department Vs Srikar Reddy Vempati, the Karnataka High Court allowed a criminal revision petition filed under Sections 397 and 401 of the Cr.PC, challenging the order dated 01.10.2019 passed by the Special Court for Economic Offences, Bengaluru in C.C. No.77/2018. The Trial Court had discharged accused Nos.2 to 6, including the respondent (accused No.6), from prosecution for the offence punishable under Section 276B of the Income Tax Act, 1961, while holding that there was sufficient material to frame charge against accused No.1 company.
The prosecution had been initiated against six accused alleging commission of offence under Section 276B. Accused No.1 was the company and accused No.2 was its Managing Director. The respondent was accused No.6 and a Director of the company. The Trial Court framed two points for determination: whether there was sufficient material to frame charge against the company, and whether accused Nos.2 to 6 had shown that they were not in charge of the day-to-day affairs of the company and were therefore liable to be discharged.
The Trial Court answered the first point affirmatively, holding that sufficient material existed to proceed against the company. However, it answered the second point in favour of accused Nos.2 to 6, observing that there was no evidence to show that they were in charge of the day-to-day affairs of the company, and discharged them.
