Vijay Jain Vs Union of India (Rajasthan High Court)
The Rajasthan High Court considered a criminal miscellaneous petition seeking quashing of Criminal Case No.293/2017 pending before the Court of Chief Metropolitan Magistrate (Economic Offences), Jaipur Metropolitan, for an offence punishable under Section 276C(1)(i) of the Income Tax Act, 1961.
The petitioner submitted that a search under Section 132 of the Income Tax Act had been conducted at his premises, during which certain documents were seized. Thereafter, two separate proceedings were initiated against him: one for imposition of penalty on undisclosed income and another by way of criminal prosecution before the trial court.
The petitioner challenged the penalty order before the Income Tax Appellate Tribunal (ITAT). By order dated 23.09.2019, the ITAT quashed the penalty imposed under Section 271AAB of the Income Tax Act. The petitioner contended that, in view of the Tribunal’s order, two proceedings arising out of the same cause could not continue simultaneously. He further relied upon the decisions of the Rajasthan High Court in Nagendra Choudhary vs. Union of India and Anr. and Ritesh Agarwal Vs. Union of India and Anr., where criminal proceedings under similar circumstances had been quashed after the penalty was set aside by the ITAT.
