Person Prosecuted u/s 420 of IPC can’t avail Benefit of Income Declaration Scheme, 2016: Uttarakhand HC [Read Judgment]

The Uttarakhand High Court has held that the persons prosecuted under section 420 of the Indian Penal Code is not eligible to avail the benefit of the Income Declaration Scheme, 2016.

As per the Income Declaration Scheme, 2016 introduced in the Finance Act, 2016, persons can voluntarily declare their undisclosed assets/ income to the department by paying tax. One of the important conditions for eligibility for a person to avail this scheme was that the Scheme shall not apply in relation to prosecution of any offence punishable under Chapter IX or Chapter XVII of the Indian Penal Code, the Narcotic Drugs and Psychotropic Substances Act, 1985, the Unlawful Activities (Prevention) Act, 1967 and the Prevention of Corruption Act, 1988.

In the instant case, the application filed by the petitioner to avail the scheme was rejected by the department by stating that CBI has filed prosecution under the Prevention of Corruption Act against the promoters of the company known as Hillways Construction Company Private Limited.

The petitioner contended that though in a criminal case after investigation the CBI has filed the chargesheet against the petitioner under Sections 120-B, 420, 468 & 471 of I.P.C., but the charges have been framed by the Special Judge, Anti Corruption, CBI against the petitioner only under Sections 120-B, 420, 468 and 471 I.P.C. and not under the provisions of Prevention of Corruption Act.

Justice Sudhanshu Dhulia held that “Admittedly Section 420 of IPC is an offence which comes under Chapter XVII of the IPC. The Scheme, of which the petitioner is seeking benefit, categorically stipulates that in case prosecution is going on against a person for any offence punishable under Chapter IX or Chapter XVII of the IPC, he is not liable to get benefit of the Scheme. Although the order dated 24.10.2016 does not refer to prosecution under Section 420 of IPC but of Corruption of Prevention Act, but since prosecution is going on against the petitioner for an offence which comes under Chapter XVII of the IPC, petitioner is not liable to be granted benefit of the said Scheme.”