‘Tax evasion’: HC issues notice to state, CID for FIR against political parties
According to the FIR, the parties allegedly received contributions from unidentified donors, "and after deduction of the commission, paid back the rest of the amount in cash to the donor.
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The HC also directed the CID to "not take coercive steps" against Gujarat President of Navnirman Sena Atul Dave, who is an accused in the FIR lodged at the Ahmedabad Zone CID Crime police station on May 25. The Gujarat High Court on Wednesday issued notice to the state government, additional director general of police CID (Crime) and in-charge police inspector CID (Crime) AC Ishrani in connection with an FIR lodged against Gujarat President of Navnirman Sena and members of multiple political parties on the alleged charges of cheating, criminal conspiracy and forgery among others.
The HC also directed the CID to “not take coercive steps” against Gujarat President of Navnirman Sena Atul Dave, who is an accused in the FIR lodged at the Ahmedabad Zone CID Crime police station on May 25. The FIR also names parties including members of the Rashtriya Samta Party (Secular), Rashtravadi Jantaraj Party, Yuva Jan Jagriti Party, Sardar Vallabhbhai Patel Party, Janta Congress Party, Bhartiya Rashtriya Tantra Party, Rashtriya Nagrik Haq Party, Ekjut Adhikar Party, Aadarshwadi Party Loktantrik and other unidentified accused.
According to the FIR, the parties allegedly received contributions from unidentified donors, “and after deduction of the commission, paid back the rest of the amount in cash to the donor.” This was allegedly done to abet income tax evasion, it added.
Following the rejection of his anticipatory bail plea in August, Dave had moved a petition before the HC contending that “the impugned FIR has alleged a criminal conspiracy on part of the accused persons to evade income tax” but the offences listed in the FIR are to be prosecuted by the Income Tax (IT) department.
Seeking quashing of the FIR and setting aside the investigations initiated by the State CID, Dave’s petition contended, “The entire act of registration of the FIR, without jurisdiction, is an abuse of the process of law…”
His counsel Utkarsh Dave said, “As per…the IT Act, the amount donated by a company to a political party…in the previous year, is to be deducted from the company’s total income for the assessment year. Similarly, the IT Act provides that the amount donated by any person to a political party…in the previous year, is to be deducted from the person’s total income for the assessment year,” he added.
In the order dated September 11, Gujarat HC Justice Nirzar Desai, issued notice to the state, additional DGP (CID (Crime) and in-charge police inspector CID (Crime) AC Ishrani. The order said, “Today, the investigating officer is present before this court. Upon a specific query that when there are no proceedings initiated under IT Act and no show cause notice under the provisions of the Act is issued, how can there be tax evasion and the misuse of the provisions of Income Tax Act and FIR is registered without there being any material from the IT Department, the reply was that on the basis of a report received from the IT Department, the FIR is registered. However, upon a specific query, it was also pointed out to the Court that pursuant to the aforesaid analysis, the IT Department as per the knowledge of the investigating officer has not initiated any proceedings under the Income Tax Act…” the order stated. The court observed, “Considering the aforesaid submissions, issue notice to the respondents, making it returnable on November 27, 2024… In the meantime, though investigation may go on… there shall not be any coercive steps against petitioner.”
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