Mahima
Karnataka High Court dismissed cases of tax evasion and destroying evidences against Karnataka Pradesh Congress President DK Shivakumar filed by the Income Tax (IT) Department.
In the case of Income Tax Department v DK Shivakumar, Justice John Micheal Cunha held, “I do not find any justifiable reason to interfere with the impugned orders. As the prosecution initiated against the respondent is bad in law and contrary to the procedures prescribed under the Code of Criminal Procedure and the provisions of the Income Tax Act, the revision petitions are liable to be dismissed and are accordingly dismissed”.
The IT Department filed cases against KPCC President under Section 200 of CrPC alleging offences under Section 276C(1) of the IT Act read with Sections 201 and 204 of IPC. The Special Court had dismissed all the three cases against Shivakumar.
IT department contended that during a raid at a resort near Badadi, Shivakumar was caught tearing a piece of paper showing his disclosed income and that the investigation should proceed without the involvement of the special court.
The Court agreed that the special court had no original jurisdiction to adjudicate upon the offences until the accused was committed to trial. On the other hand, Shivakumar argued that IT department could not have initiated prosecution before cumulating the assessment proceedings for financial years 2015-16, 2016-17 and 2017-18.
He also contended that Deputy Director of Income Tax (investigation) was in no authority to institute criminal cases against the accused which was dismissed by the Court.
The Court dismissed the petition explaining that tax, penalty and interest is evaded only when it is chargeable and there exists no presumption under law that every unaccounted transaction is an attempt to tax evasion.