Bombay HC Quashes Non-Bailable Warrant Against Arjun Rampal In 2019 Tax Evasion Case, Calls Magistrate’s Order ‘Mechanical’
Mumbai: In a relief to actor Arjun Rampal, the Bombay High Court has quashed a non-bailable warrant (NBW) issued against him by a local court in an alleged 2019 tax evasion case. The court noted that that local court’s order was “mechanical and cryptic”.
Vacation judge, Justice Advait Sethna, on May 16 also noted that the magistrate’s order was “contrary to law” and passed without application of mind.
The HC was hearing a petition filed by Rampal, through advocate advocate Swapnil Ambure, challenging the April 9 order of magistrate by which it issued NBW in a case filed by the Income Tax department for an offence under section 276C(2) of the Income Tax Act. The section pertains to a person willfully attempting to evade payment of tax, penalty or interest.
Rampal’s plea contended that his advocate had submitted an application before the magistrate seeking exemption from appearance. However, the magistrate rejected the application and issued NBW.
The HC noted that the offence of which Rampal had been accused of has a maximum punishment of three years, if found guilty. Moreover, it was a bailable offence. The magistrate’s court has “mechanically” passed the order issuing non-bailable warrant against the actor in a bailable offence, HC said.
Also, the magistrate had not recorded any reasons before issuing the NBW. “In my view, it is a cryptic order which lacks application of mind,” Justice Sethna said. Issuing a NBW in a bailable offence would cause prejudice to the actor. The magistrate overlooked that the actor’s advocate was present in the court.
The actor has also challenged the December 2019 order passed by the magistrate’s court issuing him a notice in the case. The high court scheduled the matter for further hearing on June 16.
Rampal’s advocate Swapnil Ambure submitted that the entire tax amount for the financial year 2016-17 was paid but in a delayed manner. There is no evasion of tax as alleged by the department in their complaint, Ambure added.
He further said that the NBW issued by the local court was in contravention of judgments of the Supreme Court which says in such matters courts should not resort to issuing warrants.
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