Gujarat High Court
D.L. Ashish Foundation Trust Thro Jatin … vs State Of Gujarat on 17 April, 2026
NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/CRIMINAL MISC.APPLICATION (FOR QUASHING & SET ASIDE
FIR/ORDER) NO. 23974 of 2025
With
R/CRIMINAL MISC.APPLICATION NO. 23979 of 2025
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR. JUSTICE VIMAL K. VYAS Sd/-
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Approved for Reporting Yes No
✔
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D.L. ASHISH FOUNDATION TRUST THRO JATIN D JANI & ORS.
Versus
STATE OF GUJARAT & ANR.
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Appearance:
MR DHANESH R PATEL(8226) for the Applicant(s) No. 1,2,3
MR MANAN MAHETA, APP for the Respondent(s) No. 1
MR AMAN MIR(10881) with MS KINJAL TRIVEDI for the Respondent No. 2
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CORAM:HONOURABLE MR. JUSTICE VIMAL K. VYAS
Date : 17/04/2026
COMMON ORAL JUDGMENT
1. RULE returnable forthwith. Learned APP Mr.Manan
Maheta waives service of notice of rule for and behalf of the
respondent no.1 – State. Learned Senior Standing Counsel
Mr.Aman Mir with Ms.Kinjal Trivedi, Junior Standing
Counsel waive service of notice of rule for and on behalf of
the respondent no.2 – Income Tax Department.
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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2. By way of preferring the present applications under
Section 528 of the Bharatiya Nagarik Suraksha Sanhita,
2023, the present applicants-accused seek to invoke the
inherent powers of this Court, praying to quash and set-
aside the proceedings of the Criminal Case Nos.30674 of
2018 and 38029 of 2019 pending before the learned
Additional Chief Metropolitan Magistrate, Ahmedabad, for
the offence punishable under Sections 276D and 276C(2) of
the Income Tax Act, 1961, respectively.
3. Heard learned advocate Mr.Dhanesh R.Patel appearing
for the applicants-accused, learned APP Mr.Manan Maheta
appearing for the respondent no.1 – State and Mr.Aman
A.Mir, Senior Standing Counsel with Ms.Kinjal Trivedi,
Junior Standing Counsel appearing for the respondent no.2
– Income Tax Department.
4. Learned advocate Mr.Dhanesh Patel has submitted
that the Assessee-Trust (i.e. the present applicants-accused)
had filed its return of income for the Assessment Year 2013-
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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2014 on 26.09.2013, declaring the total income of
Rs.1,21,960=00. The return was processed under Section
143(1) of the Income Tax and selected for scrutiny,
pursuant to which, a notice under Section 143(2) of the
Income-Tax Act came to be issued on 24.09.2014.
Thereafter, on 07.07.2015, a notice under Section 142(1) of
the Income Tax Act was issued to the applicants-accused,
however, the applicants failed to comply the same. On
18.03.2016, the Assessing Officer finalized the assessment
proceedings and the total income of the assessee was
determined at Rs.1,14,62,310=00 as against the return of
income filed by the assessee for the Assessment Year 2013-
2014 of Rs.1,21,960=00. Thereafter, the assessee Trust (the
present applicants) preferred appeal before the
Commissioner of Income Tax, challenging the order dated
18.03.2016 passed by the Assessing Officer under Section
144 of the Income Tax Act, which came to be dismissed by
the Commissioner of Income-Tax (Appeals) vide order dated
05.01.2018.
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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5. Learned advocate Mr.Patel has further submitted that
thereafter, the complainant – Shri Piyush N.Parmar,
Income-Tax Officer (Exemptions), Ward-1, Ahmedabad, had
filed complaints against the present applicants-accused on
31.03.2018 and 02.05.2019, respectively, for the offence
punishable under Sections 276D and 276C(2) of the Income
Tax Act. It is submitted that the learned Additional Chief
Metropolitan Magistrate, Ahmedabad, vide orders dated
31.03.2018 and 02.05.2019, respectively passed below
application Exh.1 in Criminal Case Nos.30674 of 2018 and
38029 of 2019, issued summons to the accused under
Section 204 of the Code of Criminal Procedure.
6. Learned advocate Mr.Patel has submitted that being
aggrieved by the order dated 05.01.2018 passed by the
Commissioner of Income Tax (Appeals), the applicants had
preferred appeal being ITA No.1016/Ahd/2018 before the
Income Tax Appellate Tribunal, Ahmedabad, whereby the
Tribunal, vide its order dated 29.12.2020, considered it
expedient to set-aside the order of the CIT(A) and cancel the
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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ex-parte assessment order and remand the entire issues
back to the file of the Assessing Officer for de novo
assessment. Being aggrieved and dissatisfied with the order
dated 29.12.2020 passed by the Appellate Tribunal, the
Department preferred appeal under Section 260A of the
Income Tax Act being Tax Appeal No.149 of 2021 before this
Court (Coram : Bela M.Trivedi and Ashokkumar C.Joshi,
JJ.), which came to be dismissed vide order dated
10.06.2021. Thereafter, the assessment proceedings came
to be finalized by the Assessing Officer vide order dated
10.03.2022 passed under Section 144 read with Section 254
read with Section 144B of the Income Tax Act and the
return of income filed by the assessee for the Assessment
Year 2013-2014 of Rs.1,21,960=00 came to be accepted.
7. Learned advocate Mr.Patel has, therefore, submitted
that considering the aforesaid, since the return of income of
the applicants-accused for the Assessment Year 2013-2014
has been finalized and accepted by the Department, the very
substratum of the criminal prosecution has disappeared.
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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Therefore, there is no ground to continue further with the
criminal proceedings pursuant to the Criminal Case against
the present applicants-accused and the same would be an
abuse of the process of law. He, has, therefore, prayed that
the proceedings arising pursuant to the Criminal Case be
quashed and set-aside qua the present applicants-accused.
8. Mr.Aman A.Mir, the learned Senior Standing Counsel
appearing for the respondent – Department, while
vehemently opposing the present applications, has
submitted that the Appellate Tribunal had remanded back
the issues for de novo assessment, and thereafter, the same
came to be finalized by the Assessing Officer and even
accepted by the Department. However, he has submitted
that the second offence punishable under Section 276D of
the Income Tax Act is completely a different offence. He has
further submitted that the applicants-accused have willfully
attempted to evade the tax and failed to comply with the
directions issued by the department. Therefore, the
complaints came to be filed against the present applicants-
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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accused on 31.03.2018 and 02.05.2019, respectively, for
the offence punishable under Sections 276D and 276C(2) of
the Income Tax Act. It is submitted that the learned
Additional Chief Metropolitan Magistrate, Ahmedabad, has
rightly issued summons to the applicants-accused under
Section 204 of the Code of Criminal Procedure vide orders
dated 31.03.2018 and 02.05.2019 passed below application
Exh.1 in Criminal Case Nos.30674 of 2018 and 38029 of
2019, respectively.
9. Learned advocate Mr.Mir has, therefore, urged that
considering the aforesaid, this Court may not entertain the
present applications and the same may be rejected.
10. Learned APP Mr.Manan Maheta appearing for the
respondent no.1 – State, while adopting the arguments
canvassed by learned advocate for the respondent no.2 –
Income Tax Department, has submitted that having regard
to the gravamen and seriousness of the offence, the
applications may not be entertained and the same may be
rejected.
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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11. Having heard learned advocates for the respective
parties and having considered the arguments canvassed by
learned advocate for the applicants-accused, as well as the
orders passed by this Court and the Appellate Tribunal, it
appears that the Income Tax Department has accepted the
return of income filed by the applicants-accused for the
Assessment Year 2013-2014, therefore, the substratum of
the proceedings initiated by the Department no longer
survives. As the underlying tax liability has been settled and
finalized by the competent authorities, to continue further
with the proceedings pursuant to the Criminal Case would
be an exercise in futility and an abuse of the process of law.
Therefore, this Court is inclined to exercise the inherent
powers conferred under Section 582 of the Bharatiya
Nagarik Suraksha Sanhita, 2023, to quash and set-aside
the proceedings pursuant to the Criminal Case qua the
present applicants-accused.
12. In the result, the application is allowed. The
proceedings of the Criminal Case Nos.30674 of 2018 and
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NEUTRAL CITATION
R/CR.MA/23974/2025 JUDGMENT DATED: 17/04/2026
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38029 of 2019 pending before the learned Additional Chief
Metropolitan Magistrate, Ahmedabad, for the offence
punishable under Sections 276D and 276C(2) of the Income
Tax Act, 1961, respectively, are hereby ordered to be
quashed and set-aside qua the present applicants-accused.
All consequential proceedings arising pursuant thereto are
also quashed and set-aside.
13. Rule made absolute. Direct service is permitted.
(VIMAL K. VYAS, J.)
/MOINUDDIN
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