Anilkumar B. Patil and Suresh G. Sholapurmath V. Income Tax Department

CRL.P/100387/2020

AI Insights

This case involves a criminal petition filed under Section 482 of the Criminal Procedure Code, seeking to quash a private complaint pending against the petitioners for alleged offenses under Sections 276C and 277 of the Income Tax Act, 1961. The complaint arose from an alleged shortfall in tax payment due to misappropriation by the assistant of petitioner No.2, a chartered accountant. The petitioners argued that all dues were settled and denied any collusion, especially after the death of petitioner No.2. The respondent, represented by the Income Tax Department, contended there was collusion and sought to continue the proceedings. The court found no evidence of collusion and noted the tax had been paid, leading to the quashing of the proceedings against petitioner No.1.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 839349 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 16-02-2026
• Assessment Year: misc
• Other Referred Cases: Criminal Petition No.102436/2024
• Laws Referred To: Income Tax Act, 1961, Criminal Procedure Code
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: M TIRUMALESH
• Assessee Lawyers: SHIVAKUMAR KADI
• Keywords: Collusion; Criminal Procedure; Criminal Procedure; Income Tax; Misappropriation; Quash complaint
• Section: 482; 276C; 277

Judgement Text

" - 1 - HC-KAR NC: 2026:KHC-D:2312 CRL.P No. 100387 of 2020 IN THE HIGH COURT OF KARNATAKA,AT DHARWAD DATED THIS THE 16TH DAY OF FEBRUARY, 2026 BEFORE THE HON'BLE MR. JUSTICE V.SRISHANANDA CRIMINAL PETITION NO. 100387 OF 2020 (482(CR.PC)/528(BNSS)) BETWEEN: 1. ANILKUMAR B. PATIL AGE. 46 YEARS, OCC. BUSINESS, M/S. VIVEK INDUSTRIES, OPP J.G. HOSPITAL, CHIKODI ROAD, GHATAPRBHA-591306 TQ. GOKAK, DIST. BELAGAVI. 2. SURESH G. SHOLAPURMATH AGE. 67 YEARS, OCC. CHARTERED ACCOUNTANT, COURT ROAD, GOKAK, DIST. BELAGAVI-591307. …PETITIONERS (BY SRI. SHIVAKUMAR KADI, ADVOCATE FOR SRI. SHRIHARSH A. NEELOPANT,ADVOCATE) AND: INCOME TAX DEPARTMENT REP. BY ITS INCOME TAX OFFICER, SHRI.ANGAD KUMAR, AGE. 41 YEARS, INCOME TAX OFFICER, WARD-I, GOKAK-591307 …RESPONDENT (BY SRI. M. TIRUMALESH, ADVOCATE) THIS CRIMINAL PETITION IS FILED U/SEC.482 OF CR.P.C.,PRAYING TO QUASH THE PRIVATE COMPLAINT IN CC NO.688/2015 AS PER ANNEXURE-A PENDING BEFORE THE PRINCIPAL CJ AND JUDICIAL MAGISTRATE FIRST CLASS, GOKAK FOR THE OFFENCES PUNISHABLE UNDER SECTION 276C AND 277 OF INCOME TAX ACT, 1961, IN SO FAR AS PETITIONERS CONCERNED, IN THE INTEREST OF JUSTICE. Printed from counselvise.com CHANDRASHEKAR LAXMAN KATTIMANI Digitally signed by CHANDRASHEKAR LAXMAN KATTIMANI Date: 2026.02.19 15:36:18 +0530 - 2 - HC-KAR NC: 2026:KHC-D:2312 CRL.P No. 100387 of 2020 THIS PETITION, COMING ON FOR ADMISSION, THIS DAY, ORDER WAS MADE THEREIN AS UNDER: ORAL ORDER (PER: THE HON'BLE MR. JUSTICE V.SRISHANANDA) 1. Heard Sri.Shivakumar Kadi, learned counsel appearing for Sri. Shriharsh A. Neelopant, learned counsel for the petitioners, and Sri.M. Tirumalesh, learned counsel for the respondent. 2. The petition is filed under Section 482 of the Criminal Procedure Code (for short, “the Cr.P.C.”) with the following prayer: “WHEREFORE, the petitioner most respectfully pray that this Hon’ble court may kindly be an graciously be pleased to 1. To quash the private complaint in C.C.No.688/2015 as per Annexure-A pending before the Principal Civil Judge and Judicial magistrate First Class, Gokak for the offence punishable under Section 276C and 277 of the Income Tax Ac t, 1961 in so far as petitioners concerned in the interest of justice and equity. 2. Any other order that deems fit to this Hon’ble court.” Printed from counselvise.com - 3 - HC-KAR NC: 2026:KHC-D:2312 CRL.P No. 100387 of 2020 3. Petitioner No.1 is an income tax assessee who used to file returns through the assistants of Petitioner No.2, who is a chartered accountant. For the assessment year 2008-09, the return was filed on 30.03.2009, and the tax payable was Rs.93,485/-. 4. It is the case of petitioner No.1 that the sum of Rs.93,485/- was given to the chartered accountant and handed over to his assistant in cash. However, the assistant allegedly misappropriated the amount and only deposited part of it, leading to a shortfall of Rs.90,000/-. Consequently, proceedings were initiated against the petitioners under Sections 276C and 277 of the Income Tax Act (for short, ‘the IT Act’). 5. Learned counsel for the petitioners contends that necessary action has already been taken, and petitioner No.2, the chartered accountant, is not alive. Therefore, petitioner No.1 cannot be proceeded against criminally. 6. He submits that petitioner No.1 paid the entire sum of Rs.93,485/- to the assistant of the chartered Printed from counselvise.com - 4 - HC-KAR NC: 2026:KHC-D:2312 CRL.P No. 100387 of 2020 accountant and did not collude with petitioner No.2, seeking quashing of the pending proceedings. 7. In support, reliance is placed on the judgment of a Coordinate Bench of this Court in Criminal Petition No.102436/2024 dated 02.09.2025. 8. Per contra, Sri. M. Tirumalesh, learned counsel for the respondent, contends that there was an element of collusion between petitioner No.1 and petitioner No.2 and, therefore, the proceedings should continue. 9. On perusal of the record, there is no material to substantiate collusion between petitioner No.1 and 2. Admittedly, the tax has subsequently been paid with interest. Following the principles laid down in the aforesaid criminal petition, since petitioner No.2 is deceased, the pending proceedings against the assessee, namely petitioner No.1, deserve to be quashed. 10. However, there is an apprehension that this order might affect the prosecution of the employees of petitioner No.2. Such apprehension can be addressed by a suitable observation. Printed from counselvise.com - 5 - HC-KAR NC: 2026:KHC-D:2312 CRL.P No. 100387 of 2020 11. Accordingly, the following order is passed: ORDER i. The criminal petition is allowed. ii. The pending proceedings in C.C.No.688/2015 pending on the file of the Principal Civil Judge Judicial Magistrate First Class, Gokak, are hereby quashed insofar as petitioner No. 1 is concerned. iii. Proceedings against petitioner No.2 stand abated on account of his death. iv. Quashing of the pending proceedings against petitioner No.1 shall not come in the way of prosecution of the employees of petitioner No. 2 in accordance with law. Sd/- (V.SRISHANANDA) JUDGE AC CT-CMU/LIST NO.: 1 SL NO.: 26 Printed from counselvise.com "