Tax ‘evasion’: Karnataka HC junks I-T dept plea against DKS’ discharge

BENGALURU: The Income Tax Department suffered a huge setback on Monday with the Karnataka High Court upholding the orders passed by the Special Court, discharging Karnataka Pradesh Congress Committee (KPCC) president DK Shivakumar, in cases of tax evasion and destroying evidence. 
Justice John Michael Cunha dismissed the appeals filed by the I-T Department against Shivakumar discharge from all the three cases. 

The I-T Department had filed three criminal revision petitions before the High Court against three separate orders passed by the Special Court to try criminal cases against MPs/MLAs, in the city. The orders allowed the applications filed by Shivakumar seeking discharge from the alleged offences, in February 2019.

The I-T Department filed three complaints under Section 276C(1) of Income Tax Act, read with Sections 201 and 204 of IPC, against Shivakumar for alleged evasion of tax to the tune of Rs 3.14 crore, Rs 2.56 crore and Rs 7.08 crore for the assessment years 2015-16, 2016-17 and 2017-18, respectively, and also for destroying evidence. 

I-T Dept had challenged spl court order

When a search was conducted by the I-T Department on August 2, 2017, Shivakumar was at Eagleton Resort near Bidadi. On seeing the I-T sleuths, he allegedly tore a piece of paper and this was treated as an attempt to destroy evidence. Later, it was found that he had evaded taxes.Hearing Shivakumar’s pleas, the Special Court discharged him from all three cases. The I-T Department moved the HC. 

The letter that was allegedly torn by Shivakumar, reassembled and produced before the court does not  make out a case to frame a charge under Sec 201 of IPC, the Special Court felt, while granting liberty to the I-T Department to launch prosecution afresh after estimating the undisclosed income of  Shivakuamar.