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| The Tax Publishers2020 TaxPub(DT) 4811 (Del-HC) INCOME TAX ACT, 1961
Section 51
Where Investigation unit received a Tax Evasion Petition (TEP) filed by respondent (R1) and thereafter, R1 filed application before Metropolitan Magistrate (ACMM) for status report of investigation and ACMM passed order directing revenue to file a status report, it was held that ACMM had usurped the inherent jurisdiction of Court which was impermissible under the law.
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Offence and prosecutions - Willful evasion of tax - Whether ACMM empowered to call for status report of investigation -
Investigation unit received a Tax Evasion Petition (TEP) filed by R1 against R2 and R3. Thereafter, R1 filed application before Metropolitan Magistrate (ACMM) for status report of investigation. ACMM passed order directing revenue to file a status report. Revenue filed petition against order of ACMM. Issue was as to whether ACMM has jurisdiction for calling a status report because according to revenue, no provision of the Cr.P.C. gives such power to the ACMM.Held: ACMM had usurped the inherent jurisdiction of Court which was impermissible under the law. Moreover, in cases pertaining to Tax evasion petitions like instant case, Court also exercises its powers sparingly and it is a well-settled principle that only the broad outcome of the Tax evasion petition may be communicated to the complainant, that too upon culmination of the investigation. The Income Tax Department has a specific framework of investigations dealing with the TEPs and information in respect of the investigation carried out by the office of Directorate General of Income Tax (Investigation) is not required to be intimated to the complainant as the said office is even outside the purview of the RTI Act, 2005. ACMM had no power to pass such order, and therefore same was set aside.
REFERRED : Syed Nusrat Ali v. State & Ors. [Crl. MC 2899 of 2009, dt. 5-8-2010].
FAVOUR : In favour of petitioner.
A.Y. :
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