Authority: High Court of Judicature at Madras

Order Date: 13-10-2026

Case Overview

  • Petitioners: M/s A.P. Constructions India Private Ltd (represented by Managing Director Shri P.S. Sivakumar and Director Mrs. Chitra) and the individual Managing Director P.S. Sivakumar.
  • Respondent: Deputy Commissioner of Income Tax, Corporate Circle 1(1).
  • Criminal Miscellaneous Petition (CRL MP No. 19468 of 2026) and Criminal Revision Petition (CRL RC No. 2360 of 2026) filed seeking suspension of sentence and bail.
  • Underlying conviction: Offence under Section 276C(2) read with Section 278B of the Income Tax Act for alleged willful evasion of tax for Assessment Year 2017‑2018.
  • Lower courts: Addl. Chief Metropolitan Magistrate (EO‑I), Egmore, Chennai sentenced the company to a fine of Rs 25,000 (paid) and the 2nd and 3rd petitioners to one‑year rigorous imprisonment each, a fine of Rs 25,000 each (paid), and three months simple imprisonment in default.
  • The VII Additional District and Sessions Judge, Chennai confirmed the conviction and sentence on 16‑06‑2026.
  • Petitioners argue that tax liability has been fully paid, no concealment or false entries were proved, and that the lower courts ignored evidence of financial constraints.
  • Counsel for petitioners (Mr. B. Arvind Srevatsa) contended that the revision case presents substantial grounds for acquittal and that bail suspension is warranted pending final decision.
  • Respondent’s Senior Standing Counsel (Mrs. M. Sheela) opposed relief, asserting that the lower courts correctly applied law.
  • The Court observed that both lower courts failed to appreciate the complete evidence and that the petitioners were already on bail during trial.
  • Citing Supreme Court decision in Rabi Prakash Vs. The State of Odisha (2023), the Court emphasized that suspension of sentence is appropriate when revision may lead to acquittal.

Final Outcome

  • The High Court grants suspension of sentence and bail to the 2nd and 3rd petitioners (P.S. Sivakumar and Mrs. Chitra).
  • Conditions imposed:

1. Surrender before the Addl. Chief Metropolitan Magistrate (EO‑I), Egmore, Chennai within three weeks of receiving this order.

2. Release on bail upon execution of a personal bond with two sureties, each providing Rs 15,000.

3. Photographs and left thumb impressions to be affixed on the bond; court may verify Aadhaar card or bank passbook.

4. Any fine realization is suspended during the pendency of the revision.

5. Petitioners must appear before the Addl. Chief Metropolitan Magistrate (EO‑I) on the first working day of each month, starting November 2026 at 10:30 a.m., until further orders.

  • Trial Court is directed to forward photostat copies of bail bonds and surety documents to the High Court for record.
  • The Criminal Miscellaneous Petition is disposed of with the above directions.

Topics: Criminal Revision, Tax Evasion