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| The Tax Publishers2020 TaxPub(DT) 1901 (Karn-HC) INCOME TAX ACT, 1961
Section 279
Where the sanctioning authority for launching of prosecution is the CIT but he sought approval of Chief CIT who declined to grant approval then the launch of prosecution was not valid because Chief CIT has not accorded even though not mandated so under the Act.
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Prosecution - Sanction - Maintainability of sanction order -
Assessee before Court sought for quashing of the order taking cognizance of initiation of the proceedings pursuant thereto as against assessee for the offence punishable under section 276CC. CIT had filed a complaint under section 200 of Code of Criminal Procedure against the petitioner alleging the commission of offences punishable under section 276CC as regards non-filing of returns.The CIT wrote to the Chief CIT placing all the facts, the opinion received from the standing counsel and the re-commendation of the CIT, that it was a fit case to file prosecution under section 276CC of the Act. However, the CIT had further sought for accord of approval for launching prosecution under section 276CC of the Act at the earliest but Chief CIT declined to accord sanction. Held: The sanctioning authority under section 279 of the Income Tax Act, is either the Principal Commissioner or the Commissioner or Commissioner appeals. Though the heading to the said provision refers to Principal Chief Commissioner or Chief Commissioner section 279(1) does not make any reference to the Chief Commissioner. The proviso however refers to the powers of the Principal Chief Commissioner or Chief Commissioner to issue such instructions or directions to the authorities as he may deem fit for institution of proceedings under this section. The sanctioning authority being the CIT there was no need for the said CIT to have written to the Chief CIT to seek for approval. Having so written in the event of the Chief CIT refusing the permission sought for, the entire exercise of the CIT would be rendered superfluous in that, though the Order, dt. 26-2-2014 would indicate the subjective satisfaction of the CIT. The satisfaction would be dependent on the approval of the Chief CIT in that only if the Chief CIT accorded approval for prosecution than the satisfaction of the CIT could be considered and acted upon by sanctioning prosecution. However, if the Chief CIT were to refuse permission then the CIT though satisfied could not initiate any proceedings due to the non approval by the Chief CIT.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE KARNATAKA HIGH COURT
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