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Case Law Details

Case Name : Muthulakshmi Spinning Mils Pvt Ltd. Vs Income Tax Department (Madras High Court)
Appeal Number : CRL OP(MD) No.8842 of 2022
Date of Judgement/Order : 11/03/2024
Related Assessment Year :

Muthulakshmi Spinning Mils Pvt Ltd. Vs Income Tax Department (Madras High Court)

The case of Muthulakshmi Spinning Mils Pvt Ltd. vs. Income Tax Department, adjudicated by the Madras High Court, revolves around a criminal complaint filed by the Income Tax Department against the petitioner for non-filing of Income Tax returns and delayed payment of deducted taxes. This article delves into the court’s judgment and the implications of its decision.

The petitioners sought to quash the proceedings in C.C.No.20 of 2017, arguing that the complaint under Section 200 Cr.P.C and Section 276B r/w 278B of the Income Tax Act was unjust. They contended that they had applied for compounding the offense under Section 276B but faced delays in the process.

However, the respondent, representing the Income Tax Department, countered that the petitioners failed to comply with the order to pay compounding fees, resulting in rejection of their application. The High Court noted that the petitioners’ failure to adhere to the prescribed timeline for payment led to the rejection of their compounding application.

The court emphasized that seeking similar relief without challenging the rejection order was not acceptable. Consequently, the petition was dismissed, granting liberty to the petitioners to present their case before the trial court.

The ruling in the case of Muthulakshmi Spinning Mils Pvt Ltd. vs. Income Tax Department underscores the importance of adhering to legal procedures and timelines. It highlights the consequences of non-compliance with orders issued by authorities. The judgment serves as a reminder for taxpayers to fulfill their obligations promptly to avoid legal repercussions.

FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT

This petition has been filed to quash the proceedings in C.C.No.20 of 2017 on the file of the Additional Chief Judicial Magistrate, Madurai.

2. The respondent is the complainant in C.C.No.20 of 2017. The learned counsel for the petitioners would submit that for non-filing of Income Tax returns in time and delay in payment of deducted Income Tax to the tune of Rs.1,05,241/- for the financial year 2008-2009, the respondent filed a complaint under Section 200 Cr.P.C and Section 276B r/w 278B of the Income Tax, 1961 before the learned Chief Judicial Magistrate, Madurai and the same was taken on file in C.C.No.20 of 2017. Challenging the same, the petitioners filed this present petition.

3.The learned counsel for petitioners would submit that prior to filing this quash petition, the petitioners filed an application on 23.12.2014 for compounding the offence punishable under Section 276B of the Income Tax Act, and the same was not considered till date. Hence, he submitted that this Court may issue a direction to the respondent to consider the petitioner’s application for compounding the offence in the manner known to law.

4. Per contra, the learned Standing counsel appearing for the respondent would submit that the petitioner’s application for compounding the offence was considered in favour of the petitioners and the authority ordered them to pay Rs.1,01,805/- as compounding fees on or before 19.05.2017. But the said order was not complied by the petitioners, thereby the petitioners’ application for compounding the offence was rejected on 27.07.2017. In view of the above, without challenging the said order, seeking the remedy for reconsideration of their application in the quash petition is not maintainable. Hence, he seeks for dismissal of this petition.

5. Heard the learned counsel appearing on either side and perused the materials available on record.

6. The facts of the present case is that for non-filing of Income Tax returns in time and delay in payment of deducted Income Tax to the tune of Rs.1,05,241/- for the financial year 2008-2009, the respondent filed a complaint under Section 200 Cr.P.C and Section 276B r/w 278B of the Income Tax, 1961 before the learned Chief Judicial Magistrate, Madurai. Challenging the same, the petitioners filed this quash petition. The learned counsel for the petitioners seeking a direction to the respondent to consider the petitioner’s application for compounding the offence punishable under Section 276B of the Income Tax Act. Perusal of the records shows that though the respondent/Income Tax Department had given an opportunity to the petitioners for compounding the offence, the petitioners failed to pay the compounding fees within the time prescribed by the Department ie., on or before 19.05.2017. Hence, their application for compounding the offence was rejected on 27.07.2017. But without challenging the said order, the petitioners came up before this Court for the similar relief, which is not acceptable one. Hence, this petition is liable to be dismissed.

7. In the result, this Criminal Original Petition is dismissed with liberty to the petitioners to canvass all the points before the trial Court in the manner known to law. Consequently, connected miscellaneous petitions are closed.

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