Prayagraj: The Allahabad High Court, while overturning the lower court’s decision in a case under Section 277 of the Income Tax Act, has made an important observation that the benefit of the Probation of Offenders Act cannot be given in income tax offences. The Mirzapur Income Tax Officer filed a complaint against Kamruddin Ansari and Azimullah Ansari, partners in the Bhadohi-based firm Messrs. Mohammad Ibrahim Azimullah. It was alleged that in the return filed on October 26, 1968, for the assessment year 1968-69, the firm had concealed income of Rs. 115,470 received from Messrs. Damodar Das & Others.

Azimullah Ansari died during the trial, leaving only Qamaruddin Ansari. The accused admitted his guilt, stating that the amount of ₹50,810 had been reduced by the High Court order, and that he had paid the tax and penalty on the remaining ₹61,460.

The Chief Judicial Magistrate, Mirzapur, on 28 April 1982, convicted Kamaruddin Ansari under Section 277, but released him under the Probation of Offenders Act on the grounds of the case being old, the death of the accused’s father and his confession of the crime.

The Income Tax Officer appealed this order in the High Court. Advocate Abhishek Shukla, representing the appellant, argued that Section 292A of the Income Tax Act clearly provides that Section 360 CrPC or the Probation of Offenders Act will not apply to a person convicted under this Act unless the person is under 18 years of age.

In this regard, the Supreme Court cited the cases of Union of India v. Mamta Sethi and the Punjab and Haryana High Court’s case, Commissioner of Income Tax v. Onkar Nath, which established similar principles. Despite notice, no one appeared on behalf of the respondent, so the case was heard ex parte. Justice Tej Pratap Tiwari found that the trial court had ignored the clear prohibition of Section 292A. Therefore, the order of April 28, 1982, was set aside and the appeal was allowed. The court directed the court concerned to pass a fresh order only on the point of sentence, giving both parties a fair opportunity of being heard.