V.Kannan v. The State, the Income Tax Officer

ORDER This Criminal Miscellaneous Petition has been filed, by the Revision Petitioner, praying to suspend the sentence, imposed on the Revision Petitioner, in Crl.A.No.145 of 2022, dated 30.10.2025, by the learned Principal District Sessions Court at Chennai, confirming the judgement of conviction and sentence and order, dated 14.06.2022, in EOCC.No.116 of 2016, passed by the Addl. Chief Metropolitan Magistrate (EO-I), Egmore, Chennai and to enlarge the Petitioner on bail, till the disposal of the instant Criminal Revision Case.

¶1By the impugned judgement of conviction and sentence and order of the Trial Court, the Revision Petitioner was convicted for the offence punishable under Section 276 CC of the Income Tax Act and sentenced to undergo RI for a period of one year and and pay a fine of Rs.50,000/-, in default, to undergo SI for two months. The fine amount was already paid. The impugned judgement of conviction and sentence and order of the Trial Court was confirmed by the lower appellate Court, by its impugned judgement of conviction and sentence and order.

¶2Challenging the above said judgement of conviction and sentence and order of the lower appellate court, the Revision Petitioner has filed the above Criminal Revision Case, along with the instant Criminal Miscellaneous Petition, seeking suspension of sentence and bail.

¶3This Court heard Mr.Vijayan, the learned counsel for the Petitioner and Mrs. Sheela, learned Senior Standing Counsel (Income Tax) for the Respondent and considered their submissions and also perused materials placed before this Court.

¶4The learned counsel for the Petitioner has submitted that the trial court has convicted the petitioner based on only presumption, surmises and conjectures which are not relevant to the circumstances of the same. The trial court failed to see that there are no chain of circumstances to draw irresistible conclusion that the petitioner had committed the offence. There are no prima facie case made out as against the petitioner under section 276 C of the Act, when he complied and filed his returns within the time frame under section 139(4) of the Act and the Courts below have misconstrued the ingredients of provisions of the Act.

¶5It is further argued that due to pendency of the criminal cases before this High Court, there is a blinking chance that in the near future, this Criminal Revision Case will be finally heard and decided. It is further submitted that there are arguable points in this Criminal Revision Case and the Revision Petitioner has a fair chance of success in this Criminal Revision Case. Thus, the learned counsel for the Revision Petitioner has prayed for suspension of sentence and bail, till the disposal of this Criminal Revision Petition.

¶6Several other submissions in order to demonstrate the falsity of the allegations made against the Revision Petitioner have also been placed forth before the Court. The circumstances which, according to the counsel, led to the false implication of the accused have also been touched upon at length. It has been assured on behalf of the Revision Petitioner that he is ready to cooperate with the process of law and shall faithfully make himself available before the Court, whenever required and is also ready to accept all the conditions, which the Court may deem fit to impose upon him. The Revision Petitioner undertakes that in case he is released on bail, he will not misuse the liberty of bail and will cooperate in disposal of Revision.

¶7The learned Senior Standing counsel (Income Tax) for the Respondent has opposed the arguments advanced by the learned counsel for the Revision Petitioner and submits that the judgements passed by the Courts below are as per the law, after considering the entire evidence and thus, the relief sought by the Revision Petitioner, at this stage, be refused by this Court.

¶8Considering the arguments advanced by the learned counsel for the Revision Petitioner as well as the learned Senior Standing Counsel (Income Tax) for the Respondent, this Court is of the view that both the courts below have failed to appreciate the evidence on record and the impugned judgments were passed, without considering the entire materials placed before it and during the Trial, the Revision Petitioner was also on bail.

¶9Further, it is observed that when the accused have been under incarceration for some time and when there are points in the Revision, which favour the accused, then the Courts should not shy from granting suspension of sentence, as the liberty of the individual would be at stake, if the revision results in acquittal at a later point of time. In this regard, the decision of the Hon'ble Supreme Court of India, in the case of Rabi Prakash Vs. The State of Odhisha reported in 2023 Live Law (SC) 533 is of relevance.

¶10The Revision Petitioner has raised substantial grounds in the Revision, which require detailed appraisal. Further, the Revision is not likely to be taken up in the near future. In such view of the matter, this Court is of the view that the Revision Petitioner is entitled to the relief of suspension of sentence and bail.

¶11Accordingly, pending the Criminal Revision Case, the relief of suspension of sentence and bail is granted to Revision Petitioner, namely, V. Kannan, on the following conditions:- i. The Revision Petitioner shall surrender before the learned Addl. Chief Metropolitan Magistrate (EO I), Egmore, Chennai, within three weeks from the date of receipt of a copy of this order and on such surrender, the Revision Petitioner is ordered to be released on bail, on his executing a personal bond, along with two sureties for a sum of Rs.15,000/- each and subject to furnishing an undertaking that he will co-operate in the hearing of the present Revision. ii. The Revision Petitioner and sureties shall affix their Photographs and Left Thumb Impression in the bond and the above said Court may obtain copies of their Aadhaar card or Bank pass Book to ensure their identity. iii. The realization of fine, if any, shall also remain suspended during the pendency of the present Revision. iv. The Revision Petitioner shall appear before the Addl. Chief Metropolitan Magistrate (EO I), Egmore, Chennai once in every month, ie., on the first working day, commencing from the month of September 2026, at 10.30 a.m., until further orders.

¶13On acceptance of his bail bonds and sureties, the Trial Court shall transmit photostat copies thereof to this Court for being kept on records of this Revision.

¶14With the above directions, this petition is ordered.

22.07.2026 Index:Yes/No Internet:yes/no msr To

¶1The Addl. Chief Metropolitan Magistrate (EO-I), Egmore, Chennai.

¶2The Principal District Sessions Court at Chennai 3 .The Asst. Commissioner of Income Tax,Central Circle 3(2), Investigation Wing, Room No.325, No.46, M.G.Road, Chennai

SHAMIM AHMED, J. msr Crl.MP.No.541 of 2026 in Crl.RC.No.85 of 2026

22.07.2026

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 22.07.2026 CORAM: THE HONOURABLE MR.JUSTICE SHAMIM AHMED Crl.MP.No.541 of 2026 in Crl.RC.No.85 of 2026 V. Kannan Petitioner Vs The State, The Income Tax Officer, NCW-5(1), No.6111, Kannammal Building, Anna Salai, Chennai 600 006. Respondent Prayer:- Petition filed u/s.389(3) of Cr.P.C., under section 430(3) of BNSS to suspend the sentence and conviction dated 30.10.2025 passed by the learned Appellate Authority in Crl.A.No.145 of 2022 on the file of Principal District Sessions Court at Chennai confirming the order passed by the trial court dated 14.06.2022 in E.O.C.C.No.116 of 2016 (on the file of learned Addl. Chief Metropolitan Magistrate (E.O.I), Egmore, Chennai), against Revision Petitioner/Appellant/Accused, pending disposal of the above Revision Petition. For Revision Petitioner : Mr.D.Vijayan, For Respondent :Mrs. Sheela, Senior Standing Counsel (Income Tax)