Rajendra Babu, J. - (1.) Twelve cases were lodged against the respondents under the Income-tax Act, 1961 (hereinafter referred to as 'the Act') before the Metropolitan Magistrate for offences punishable under the Act. In relation to the assessments arising under the Act, appeals had been preferred either before the Commissioner of Income-tax (Appeals) or the Income-tax Appellate Tribunal (hereinafter referred to as 'the Tribunal'). On the basis that the appeals were pending the respondents filed applications for stay of the proceedings arising before the Criminal Court. Several decisions were cited before the Court to support the contention that the decision of the appellate authorities in the income-tax proceedings would be relevant to the criminal prosecution instituted against the respondents. The learned Magistrate, after examining the position in law as to whether the findings of the appellate authorities are relevant for the purpose of the criminal proceedings and to avoid conflicting decisions of the criminal Court and the appellate authorities, felt that it would be appropriate to grant an interim order of the following nature:"ORDER The work of recording evidence shall proceed. However, passing of order about framing of charge, discharge of the accused or acquittal of the accused shall be stayed during pendency of the appeals by the accused before the Income-tax appellate Authorities. These orders will be passed after the appeals filed by the accused before the Income-tax Authorities are finally decided."
(2.) Against that order, revision petitions were filed before the Sessions Court. The Sessions Court did not interfere with the order made by the learned Magistrate and dismissed the same. Thereupon, the matter was carried further to the High Court and the High Court, while entertaining a writ petition noticing several decisions of that High Court and of this Court, issued rule in the matter and granted an interim order staying the proceedings in the criminal cases filed before the learned Magistrate. It is against this order that these special leave petitions have been filed.
(3.) The prosecution in criminal law and proceedings arising under the Act are undoubtedly independent proceedings and, therefore, there is no impediment in law for the criminal proceedings to proceed even during the pendency of the proceedings under the Act. However, a wholesome rule will have to be adopted in matters of this nature where Courts have taken the view that when the conclusions arrived at by the appellate authorities have a relevance and bearing upon the conclusions to be reached in the case necessarily one authority will have to await the outcome of the other authority.;