DAROPTI DEVI FAMILY TRUST Vs. CHIEF JUDICIAL MAGISTRATE

JUDGEMENT

(1.) ALL these petitions have separately been filed by Raja Ram and Sons either in their capacity as assessees or as trustees of family and other trusts. The delinquent firm or trust is alleged to have got certain work done through sub-contractors. While making payment to the subcontractors amounts exceeding Rs. 5,000 in every particular case, the delinquent firm or trust is alleged not to have deducted at source in terms of Section 194c (2) of the Income-tax Act, 1961, at the rate of 1% while making payment or crediting those payments in favour of the sub-contractors in their own books of account. Hence, prosecution under Section 276b of the Income-tax Act, 1961, was initiated. It is averred in the complaint that the persons arrayed as the accused are partners of Raja Ram and Sons in one form or the other and, therefore, persons in charge of and responsible for the conduct of its business and as such are liable to be tried and punished jointly for the offences aforesaid.

(2.) BESIDES contesting the liability of deducting tax at source from the sub-contractors on merits as also the liability to be proceeded against in the complaint, filed by the Income-tax Officer, it has been urged in Criminal Writ No. 689 of 1986, that the order passed by the learned Chief Judicial Magistrate, Chandigarh, summoning the petitioners before himself is illegal, arbitrary, without jurisdiction and has been passed in violation of Section 200/202 of the Criminal Procedure Code, because the learned Chief Judicial Magistrate did not apply his judicious mind to the factual and legal position obtaining in the case, did not record his reasons of subjective justification to the effect that there were sufficient grounds made out for proceeding against the petitioners.

(3.) I have heard Shri V. K. Jindal, advocate, for the petitioners, Shri Ashok Bhan, Senior Advocate, with Shri A. K. Mittal, advocate, for the respondents, and have carefully gone through the relevant record.