In Brief
In this criminal appeal, appellants challenged a trial court's initiation of prosecution for allegedly making false statements during income tax search proceedings. The appellants were residents of both Bhopal and Aurangabad, and a search was conducted simultaneously at both locations. When questioned under Section 131 of the Income Tax Act, they denied holding any locker; however, a locker was subsequently found at Aurangabad. The Deputy Director of Income Tax (Investigation)-I, Bhopal filed the complaint. The Supreme Court held that although the Bhopal court had territorial jurisdiction (as the search operations were composite and simultaneous at both locations), the Deputy Director was incompetent to lodge the complaint. Only the Deputy Commissioner (Appeals) under the Income Tax Act, not the Deputy Director, ordinarily receives appeals from income tax officers. Section 195 of the CrPC mandates that such complaints must be filed by the appropriate authority; non-compliance voids the prosecution. The appeal was allowed and the proceedings set aside.
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