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Application under section 482, Criminal Procedure Code for prosecution under sections 277 and 276C of the Income-tax Act - Evasion of tax and making false statement. Analysis: The judgment addresses an application under section 482, Criminal Procedure Code, filed by the assessee facing prosecution for offenses under sections 277 and 276C of the Income-tax Act, related to tax evasion and false statements. Section 276C pertains to willful attempts to evade tax or payment, with provisions for imprisonment and fines based on the amount involved. Section 277 deals with false statements in verification, with corresponding penalties based on the tax amount evaded. The applicant's counsel argued that the omissions or commissions forming the basis of prosecution were negated by the Commissioner of Income-tax's appellate judgment, rendering the grounds for false statement or tax evasion invalid. The counsel relied on a judgment of the Apex Court in a similar case to support the argument that prosecution should be quashed if the appellate authority finds no basis for it. However, the respondent's advocate argued that even if the grounds for prosecution were nullified by the appellate judgment, they could be revived by the Tribunal. Citing another Apex Court judgment, it was established that pending reassessment proceedings do not bar criminal prosecution under sections 276C or 277 of the Income-tax Act. The judge considered the arguments and precedent cited by both parties, emphasizing that in economic offenses, section 482 of the Criminal Procedure Code should not be invoked lightly. However, in rare cases where undue harassment may occur without a valid basis, the court should intervene. In the present case, the judge noted that the appellate judgment of the Commissioner provided a protective umbrella to the assessee, and proceeding with prosecution would be an abuse of process. Therefore, the judge directed the concerned Magistrate to stay proceedings under section 309 of the Criminal Procedure Code until the Income-tax Appellate Tribunal's judgment on the Commissioner's order is available. The decision allowed for a reevaluation of prosecution based on the Tribunal's judgment, with the Magistrate having the discretion to continue or quash the proceedings depending on the outcome. The applicant's counsel undertook to ensure the accused's presence in court upon the Tribunal's judgment and to provide a copy of the Tribunal's decision at that time. The judgment aimed to prevent unnecessary prosecution pending a final decision by the appellate authority, ensuring a fair and just process for the accused.
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