MR.SUNKI RAJENDRA REDDY V. INCOME TAX DEPARTMENT

CRL.P/3637/2019

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Mr. Sunki Rajendra Reddy, an MLA from Telangana and chairman of Navodaya Education Trust, faced criminal proceedings initiated by the Income Tax Department for alleged violations under the Income Tax Act, 1961. The case was initially filed in Raichur but was transferred to a Special Court in Bengaluru, designated for cases against elected MPs/MLAs in Karnataka. The petitioner contested the jurisdiction of the Special Court, leading to this criminal petition. The High Court of Karnataka ruled that the Special Court lacked jurisdiction over the petitioner, given his affiliation with Telangana, and thus dismissed the petition to quash the proceedings, remanding the case back to Raichur.

• Counselvise Citation: [2020] 140 COUNSELVISE.COM (IT) 758594 (HC-KARNATAKA)
• Appeal Type: Others
• Pronouncement Date: 02-11-2020
• Assessment Year: misc
• Other Referred Cases: Ashwini Kumar Upadhyay Vs. Union of India and others in WP (Civil) No.699/2016
• Laws Referred To: Income Tax Act, 1961, Cr.P.C.
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: JEEVAN NEERALGI; K P YASHODHA
• Assessee Lawyers: VEERENDRA PATIL
• Keywords: Income Tax; Jurisdiction; Quash Proceedings; Special Court; MPs/MLAs
• Section: 482; 277; 276 C (1)

Judgement Text

" 1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 02ND DAY OF NOVEMBER, 2020 BEFORE THE HON'BLE MR. JUSTICE JOHN MICHAEL CUNHA CRIMINAL PETITION No.3637/2019 BETWEEN: Mr. Sunki Rajendra Reddy S/o. Late Rajeshwar Reddy, Aged about 54 years, Occ: Chairman, Navodaya Education Trust, Raichur & MLA, Narayanpet, Telangana State, R/o “Yashoda”, Yeragera Road, Raichur - 584 101. …Petitioner (By Sri. Veerendra Patil, Advocate) AND: 1. Income Tax Department By its Assistant Director of Income Tax (Investigation), 2nd Floor, Suresh Complex, Infantry Road, Sanjay Gandhi Nagar, Bellari – 583 101. 2. State of Karnataka, Rep. by its Chief Secretary, 2 Vidhana Soudha, Bengaluru. 3. State of Telangana, By its Chief Secretary, Secretariat, Opposite Lumbin Park, Hyderabad, Telangana. ...Respondents (By Sri. Jeevan J. Neeralgi, Advocate for R1; Smt. K.P. Yashodha, HCGP; Vide order dated 21.10.2020 service of notice to R3 is held sufficient) This Criminal Petition is filed under Section 482 Cr.P.C. praying to quash the proceedings pending before the Court of the LXXXI Additional City Civil and Sessions Judge, Bengaluru City CCH-82 (Special Court Exclusively to deal with criminal cases related to elected MPs/ MLAs in the State of Karnataka) in Spl.C.No.210/2018. This Criminal Petition coming on for Admission, this day, the Court through video conference made the following: O R D E R Though this matter is listed for admission, yet with the consent of learned counsel for petitioner and learned Standing counsel for respondent No.1 and learned HCGP for respondent No.2, the matter is taken up for final disposal. 3 2. Petitioner is an elected MLA of Telangana State. Criminal prosecution came to be launched against the petitioner in the Court of the JMFC, Raichur, based on the private complaint filed by respondent No.1 alleging commission of offence punishable under Sections 276 C(1) & 277 of the Income Tax Act, 1961. 3. As per the averments made in the complaint, cause of action for prosecution of the petitioner arose within the territorial limits of the Magistrate, Raichur. The offences alleged against the petitioner are triable by the Magistrate. However, in view of constitution of Special Court for trial of the cases against MPs/MLAs within the State of Karnataka vide notification dated 08.02.2018 pursuant to the directions of the Hon’ble Supreme Court of India in Ashwini Kumar Upadhyay Vs. Union of India and others in WP (Civil) No.699/2016 dated 16.09.2020, the matter has been transferred to the Special Court at Bengaluru. 4 4. Undisputedly, the notification issued by the Government of Karnataka vide order dated 08.02.2018 confines only for trial of the cases filed against MPs/MLAs elected from the State of Karnataka. In that view of the matter, the Special Court constituted vide notification dated 08.02.2018 does not derive jurisdiction to try the offences alleged against the petitioner. 5. Petitioner has sought for quashing the entire proceedings initiated against him pursuant to the private complaint in C.C.No.298/2016 (Spl.C.No.210/2018). As the allegations made in the complaint prima-facie disclose the ingredients of the offences which requires to be tried by the Magistrate, the same cannot be quashed. Hence, petition is dismissed. Matter is remitted to the Court of Addl. CJM, Raichur. Since the proceedings conducted by the Special Court are without jurisdiction, learned Addl. CJM, Raichur, shall proceed with the matter from the stage of transferring the same to the Special Court. 5 Send back the records to the trial Court, forthwith. Sd/- JUDGE SV "