Raj Kumar Sodera vs Chief Commissioner of Income Tax and Others

B.N. Agrawal, J.—Heard the parties.

This application has been filed for quashing the prosecution of the sole petitioner under Sections 276C and 277 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). It has been stated in this application categorically, that no valid sanction as required u/s 279 of the Act has been obtained. In the petition of complaint it has been mentioned that the sanction has been accorded by the Commissioner of Income Tax, Ranchi, and a copy thereof was enclosed with the petition of complaint. The said enclosure is annexure 2 to this application. From annexure 2 it appears that the same is a show-cause notice given to the assessee requiring him to show cause why a criminal prosecution be not launched against him. This notice obviously cannot be treated as an order according sanction. Learned counsel appearing on behalf of the Income Tax Department has not taken the stand that the Commissioner of Income Tax has accorded sanction and the order is there in the file but the same has not been filed along with the petition of complaint. From these facts, it appears that prosecution of the petitioner is fit to be quashed as no sanction as required u/s 279 of the Act has been obtained which is the condition precedent for taking congnizance.

Accordingly, this application is allowed and prosecution of the petitioner is hereby quashed.