Case Note & Summary
The petitioners, husband and wife and directors of companies, were accused of offences under Sections 181 (false statement on oath), 201 (causing disappearance of evidence), and 204 (destruction of document) of the Indian Penal Code (IPC) based on statements made during a search conducted under Section 132(4) of the Income Tax Act, 1961. The respondent, Deputy Director of Income Tax (Investigations), filed a complaint before the JMFC, Margao, who took cognizance and framed charges. The petitioners sought discharge, which was refused by the JMFC and upheld by the Additional Sessions Judge. They then filed criminal writ petitions under Section 482 of the Code of Criminal Procedure, 1973 (CrPC) before the Bombay High Court at Goa. The key legal issue was whether the prosecution could proceed without a complaint in writing by the income tax authority, as required under Section 195 CrPC, given that proceedings under the Income Tax Act are deemed to be judicial proceedings under Section 136 of that Act. The court examined Section 136, which deems proceedings before an income tax authority as judicial proceedings for purposes of Sections 193 and 228 IPC and for Section 196 IPC, and deems the authority as a Civil Court for purposes of Section 195 CrPC. Section 132(4) allows the authorised officer to examine on oath any person during search, and such statements may be used in evidence. The court held that the statements made under Section 132(4) were made in a proceeding deemed to be a judicial proceeding, and therefore any offence of false statement or related offences would attract the bar under Section 195 CrPC, which requires a complaint by the court or authority before cognizance can be taken. Since no such complaint was filed by the income tax authority, the Magistrate's order taking cognizance and framing charge was without jurisdiction. The court allowed the petitions, quashed the orders of the JMFC and Additional Sessions Judge, and discharged the petitioners.
Headnote
A) Criminal Procedure - Section 195 CrPC - Bar against taking cognizance - Complaint by court required - Prosecution for offences under Sections 181, 201 and 204 IPC based on statements made during search under Section 132(4) of Income Tax Act, 1961 cannot be taken cognizance of without a complaint in writing by the concerned court or authority, as the statements were made in a proceeding deemed to be judicial proceeding under Section 136 of the Income Tax Act. Held that the Magistrate's order taking cognizance and framing charge was without jurisdiction (Paras 4-8). B) Income Tax Act - Section 136 - Deemed judicial proceeding - Statements under Section 132(4) - Statements made during search under Section 132(4) are made in a proceeding deemed to be judicial proceeding under Section 136, and therefore any false statement therein attracts the bar under Section 195 CrPC. Held that the income tax authority is deemed to be a Civil Court for purposes of Section 195 CrPC, and a complaint by such authority is necessary (Paras 4-6). C) Indian Penal Code - Sections 181, 201, 204 - False statement, disappearance of evidence, destruction of document - Prosecution without complaint under Section 195 CrPC is invalid - The allegations that the accused made false statements and caused disappearance of evidence during search under Section 132(4) cannot be prosecuted without a complaint by the income tax authority. Held that the proceedings are quashed (Paras 7-8).
Issue of Consideration
Whether the petitioners/accused can be prosecuted for offences under Sections 181, 201 and 204 IPC based on statements made during a search under Section 132(4) of the Income Tax Act, 1961, without a complaint by the income tax authority as required under Section 195 CrPC.
Final Decision
The court allowed the petitions, quashed the orders dated 24/09/2009 of JMFC, Margao and 7/04/2010 of Additional Sessions Judge, Panaji, and discharged the petitioners from the offences under Sections 181, 201 and 204 IPC.
Law Points
- Section 482 CrPC
- Section 195 CrPC
- Section 136 Income Tax Act
- Section 132(4) Income Tax Act
- Sections 181/201/204 IPC
- judicial proceeding
- false evidence
- complaint by court
- sanction for prosecution
