Ritu Butalia v. State (2026) 310 Taxman 620 (Delhi)(HC)

S. 276C : Offences and prosecutions-Wilful attempt to evade tax-Prosecution was directed to produce original documents for inspection during cross-examination-The cost of Rs. 5,000/-imposed by the Trial Court is set aside [S. 277, IPC 191, Indian Evidence Act, S.78, Diplomatic and Consular Officers (Oaths and Fees) Act, S. 3, CRPC, 480]

 Accused was prosecuted under sections 276C and 277 of the Income-tax Act read with section 191of IPC for alleged non-disclosure of foreign assets. During pre-charge evidence, the prosecution exhibited foreign documents as received from BVI and Singapore authorities, with originals marked “OSR” (Original Seen and Returned). Accused, upon inspecting photocopies, noted lack of diplomatic authentication/attestation and sought production of originals under section 78 of the Indian Evidence Act read with section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act. Trial Court dismissed the application, terming it a delay tactic and imposed costs. Since the accused’s right to a fair trial included effective cross-examination, the accused was entitled to production and inspection of original foreign documents relied upon by the prosecution at the stage of cross-examination, and whether the Trial Court’s order dismissing the application as a delay tactic and imposing costs was unsustainable. Court held order was to be modified, and the prosecution was to be directed to produce original documents for inspection during cross-examination, with costs set aside. The cost of Rs. 5,000/-imposed by the Trial Court is set aside, and the Petitioner is directed to cooperate in the expeditious conclusion of the trial.

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