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2022 (2) TMI 48 - MADRAS HIGH COURTOffences u/s 276C - tax evasion - false or bogus claims - incorrect claim of deduction u/s 54B - penalty proceedings under Section 271(1)(c) of the Act has also initiated - HELD THAT:- It is not the case of the A.O.that the Asssessees claim were false or bogus. Excess amount was also paid by the Assessees. Thereafter penalty also levied. It is not in dispute that the above order has reached finality and the same has not been challenged. Therefore, any finding recorded by the ITAT in the similar allegations certainly binding on the Revenue. When the Tribunal has held that “the Assessing Officer has presumed that the claim is bogus or false without making any enquiry. It is not the case of the Assessing Officer that the Claim is false or bogus. The Assessing Officer has not examined the claim of assessee and found whether they have given money to M/s. Alpha Commercials for the purpose of investment in the property. In the absence of any materials the Assessing Officer has presumed that the assessee claiming exemption is false or bogus.” When the Appellate Tribunal has factually recorded the finding that there was no suppression of facts and the assessee has originally disclosed the receipt of the sale property, merely claimed deduction it cannot be said that there was wilful evasion of Tax. As recorded by the Appellate Tribunal the disclosure has been made. There is no suppression of facts. Therefore, it cannot be said that merely exemption is claimed to the property and the investment has not been made, the wilful evasion cannot be presumed as the Appellate Tribunal has found that there was no suppression. Therefore, initiation of prosecution on the similar allegations is nothing but futile exercise. It is also to be noted that the land in question measuring around 3.9 acres. Merely on the statement it is situated in urban area and the agriculture was not carried out at the relevant point of time, it cannot be said that there was suppression. At any event considering the factual aspects which was dealt by the Income Tax Appellate Tribunal, this Court is of the view that the continuation of the prosecution is waste of time and futile exercise. Accordingly, the proceedings initiated in E.O.C.C.75 of 2016 to E.O.C.C.82 of 2016 pending on the file of the of the Additional Chief Metropolitan Magistrate (E.O.II), Allikulam, Chennai, are quashed. - Decided in favour of assessee.
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