Facts of the Case

The petitioners, M/s Infonox Software Pvt. Ltd. & Others, filed multiple criminal miscellaneous petitions before the Delhi High Court challenging proceedings initiated by the Deputy Commissioner of Income Tax.

The matter pertained to alleged non-compliance with statutory requirements under Section 139(1) of the Income Tax Act, 1961, particularly regarding filing obligations.

During the course of proceedings, it was brought to the notice of the Court that an appellate order passed by the Commissioner of Income Tax (Appeals) dated 18.05.2018 was relevant to the determination of the dispute and had not yet attained finality.

Issues Involved

  1. Whether the petitions challenging criminal proceedings for non-compliance under Section 139(1) were maintainable at the present stage.
  2. Whether the alleged default in compliance was wilful in nature.
  3. Whether petitioners should be permitted to raise their defences before the trial court instead of invoking inherent jurisdiction of the High Court.

Petitioner’s Arguments

  • The petitioners sought permission to withdraw the petitions after initial arguments.
  • It was submitted that certain contentions—particularly relating to petitioners Shivani Mittal and Venkatramaraju Nadempali—may be more appropriately raised before the competent Criminal Court.
  • The petitioners also requested liberty to re-approach the High Court after final adjudication of the appellate proceedings concerning tax liability and compliance.

Respondent’s Arguments

  • The respondent (Deputy Commissioner of Income Tax) opposed the petitions and supported continuation of proceedings in accordance with law.
  • It was implied that the matter should proceed through the prescribed statutory and criminal adjudication process.

Court’s Findings / Order

  • The Delhi High Court permitted the petitioners to withdraw all the pending petitions.
  • The Court recorded that:
    • The petitioners reserve their right to raise all contentions before the concerned Criminal Court.
    • Liberty is granted to approach the High Court again on the issue of wilful default under Section 139(1) after the appellate order attains finality.
  • Accordingly, all petitions were dismissed as withdrawn with liberty granted as prayed.

Important Clarification by the Court

  • Withdrawal of petitions does not amount to adjudication on merits.
  • Defences of specific petitioners (Shivani Mittal and Venkatramaraju Nadempali) remain open for consideration before the trial court.
  • The question of “wilful default” under Section 139(1) is left open and can be revisited after conclusion of appellate proceedings.

Sections Involved

  • Section 139(1), Income Tax Act, 1961
  • Criminal proceedings relating to alleged non-compliance of statutory filing obligations.

Link to download the order -

https://delhihighcourt.nic.in/app/case_number_pdf/2019:DHC:7499/RKG07032019CRLMM37242018_125831.pdf

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