Spice Corporation Ltd. and Others vs Deputy Commissioner of Income Tax

R.S. Sodhi, J.—This petition is directed against the judgment and order of the learned A. C. M. M., dated December 1, 2001, whereby the learned judge has directed that during the pendency of the reference the pre-charge evidence of the complainant be recorded and thereafter, the proceedings be stayed awaiting the High Court''s decision on the reference.

The facts of the case are that the Income Tax Appellate Tribunal held that there was no concealment of fact and depreciation on bottles was allowable and on the question of depreciation on computers, the matter was remanded to the assessing authority which has now decided in favor of assessed. The reference against the order of the Income Tax Appellate Tribunal regarding depreciation on bottles is pending in the High Court.

Learned counsel for the petitioner has drawn my attention to the judgment of this court in Joint The Joint Commissioner of Income Vs. M/s. Anatronics Gen. Co. (P) Ltd., where a Division Bench of this court has upheld the Tribunal''s finding justifying the assessed''s claim for allowance of depreciation at 100 per cent. on each bottle. In view of the law that stood settled by the aforesaid judgment, it would not be proper to continue with criminal proceedings which must sooner than later attain finality.

In view thereof, I am of the opinion that further proceedings in the complaint filed by the Income Tax Department before the learned A. C. M. M. in C. C. No. 41 of 1994 be stayed. I order accordingly. It would be open to the Department to revive the proceedings in the event the reference of the High Court is answered in its favor.

With this, Crl. M. (M) No. 417 of 2002 is disposed of.