M/s. S.R.S. Projects and 4 others V. The Dy. Commissioner of Income Tax, Circle-11(1))

CRLP/981/2023

AI Insights

This case involves a criminal petition filed under Section 482 of the Code of Criminal Procedure, 1973, by M/s. S.R.S. Projects and several individuals against proceedings initiated under the Income Tax Act for alleged tax evasion. The petitioners sought to quash the charges and stay the proceedings, arguing that a compounding application they filed is pending adjudication, which if accepted, would resolve the criminal charges. The court considered the potential outcome of the compounding application and decided to stay the proceedings until a decision is made on the application.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 758124 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 09-02-2023
• Assessment Year: misc
• Laws Referred To: Cr.P.C., Income Tax Act
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AJAY KUMAR KULKARRNI
• Assessee Lawyers: G KUMAR
• Keywords: Compounding application; Income tax evasion; Quash Proceedings; Stay proceedings
• Section: 276C(2); 482; 278B; 278E; 279(2)

Judgement Text

"[ 32sl ] Between: AND 1. M/s. S.R-S. l^rglects, M/s. S.R.S. projects, having its Regd Office at 15, Survey No. 283, Peart's Vailey, Nizanipet, Kukatp;|ry. Hyd-erabad_s00 09d Represented by its t ranaging P'artner V. Ravi Kumdr i.tj., p6titioner No.2 2. V . Ravi Kumar, S/o. Kamaiah Naidu Vadlamudi, Aged about 41 ,ears,oc_c.painter H. No.34-78-2, Vivekandapuram Colony, Near Neredemet x Roads, Sainikpuri, Secunderabad -500094 ' 3. 9leey.dya Vadlamudi, D/o. Venkateswara Swamy Soorapaneni, Aged about 32, Plot no. 15, Green, Avenue, Rasil Develofers, Bdside K.A-Sagha;, Nizarnpet, Hyderabad-500 072. a. )/. Sqre_sh Kumar, S/o. Kamai Naidu Vadamudi, Aged about 39 years, plot No.lS,Green Avenue, Rasi Developers, Beside K.-A. Sagham, triizampet, Hyderabad-500 072. 5. -Syqqn_a Vadlamudii, D/o. Brabhakar Naidu Boyapati,pfc Aged about 32 years, 34-.7 B-2,occ.partner Vivekandapuram Colony, Neai Ner?Oemet X Fioads, Sainikpuri, Secunderabad -500094 IN THE HIGH COURT FOR THE STATE OF TELANGANA AT I{YDERABAD THURSDAY,THE NINTH DAY OF FEBRUARY TWO THOUSAND AND TWENry THREE PRESENT THE HONOURABLE SRl JUSTICE K.SURENDER CRIMINAL PETITION NO: 9810F 2023 .,.PETITIONER/ACCUSEO Nos.1 to 5 The Dy..Commissioner of lncome Tax, Circle-i1(1)), Raum Na .1012, lOth Floor, Signature Towers, Opp. Botanical Garden, k6ndapur, Hyderabad ...RESPONDENTS/COMPLAINANT Petition under section 482 of cr.p.c praying that in the circumstances stated in the Memorandum of Grounds of criminal petition, the High court may be pleased to quash c.c.No.268 ol 2017 on the file of Special Judge for Economic Offences at Hyderabad and quash the Charges under Sec. 276q4, and 278 B of the lncome Tax Act against the Accused. / l.A. NO: 2 OF 2023 Petition unde Section 482 of Cr.P.C praying that i^ the circumstances stated in the Memorr rrdum of Grounds of Criminal Petition, tht: High Court may be pleased to stay all t r,: further proceedings in CC No. 2681201/ o I the file of the Special Judge for ec cnomic offences at Hyderabad and qua:;ir the charges under Sec 276 C ( 2 ) & 27 B ctt the lncome Tax Act. This Petition tlming on for hearing, upon perusing thr: fulemorandum of Grounds of Criminal [)etition and upon hearing the arguments of S ri G. Anil Kiran Kumar, Advocate for the Petitioner and of Sri Ajay Kumar Kulkarrri, Advocate for the Respondent. The Court made the following: ORDER THE HONOURABLE SRI JUSTTCE K.SURENDER CRIMINAL PETITION No.981 OF 2023 ORDER: This Criminal Petition is filed under Section 482 of the Code of Criminal Procedure, 1973 (for short 'Cr.P.C.') by the petitioners/Al to A5 to quash the proceedings against them in C.C.No.268/2O17 on the hle of the Special Judge for Economic Offences at Hyderabad. The offences alleged against them are under Sections 276(cl(21 read with Sections 278 B & 278 E of the Income Tax Act, 196 I 2. Learned Counsel appearing for the petitioners would submit that the income-tax authorities have found tax evasion as far as petitioners are concerned. He further submits that a compounding application in accordance with Section 279(21 of thc Income-tax Act, 196 1 was made on 03.12.2019 and it is pending adjudication by the Chief Commissioner of Income-tax. In the event of acceptance of the compounding application, the Act prescribes closure of the criminal case 3. In the seLid circumstances, this Courl rleems it appropriate to stay all further proceedings ,rgzdnst the petitioners in C.,1.No.26812017 on the file of the lipecial Judge for Economic C f lences at Hyderabad, untiL dist]r rsiil of the compounding ;lpplication pending belore the Chief Commissior-ier c f income-tax. On the basis of ttL,: otLtcome of the compoundirg application, the trial c,an ltr: proceeded against these pe t.itioners in the Special Cour-t 4. Accordingl',, the Crirninal Petition is disposr:cl olf Miscellaneo'rs applications pending, il' any, sh,all stand closed. //TRUE COPY// S,D/-T. JAYASREE ASSIS,T,qNT REGISTRAR To, :;I cTloN OFFICER 1 2 4 q s *l'ru+th'++#i',i**ff ,;k:'\",il\"#It;.*rrsrrro''*n ?*3 33 3;[3 av Kumar k'rk;;i\"A;;;:i\".,EFfti br Pmc.. HIGH COURT DATED:09l02li'023 ORDER CRLP.No.981 <'f 2023 DISPOSING Ot' THE CRIMINAL PETITION ?i(C,, Ar-e, ./- flE ra IS i !41 l I t 1E tli\"R ?t?l z .ii i "