9911796707
TMI Blog2003 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... C and 277 - - - - - Dated:- 5-9-2003 - Judge(s) : VIRENDER SINGH. JUDGMENT VIRENDER SINGH J.-The Income-tax Officer (in short the "the ITO"), Special Circle III, Jalandhar has filed the present appeal against the judgment of the learned Chief Judicial Magistrate dated January 7, 1991, whereby the respondents have been acquitted of the charge under sections 276C and 277 of the Income-tax Act, 1961 (for short lithe Act"). M/s. Jagdish Ram Manak Chand Jain respondent No.1, is the firm dealing in clothes at village and post office Rahon, Tehsil Nawanshahr, District Jalandhar. The other three respondents are its partners. At the very outset, it has been brought to my notice by Mr. Vikas Behl, learned counsel for the respondents that re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad agreed to be assessed at net income of Rs. 70,000 including unexplained investments, etc., for the purposes of tax. A penalty of Rs. 12,000 was also imposed upon the firm. The tax and the penalty was consequently paid. Thereafter, a complaint under sections 276C and 277 of the Act was filed before the concerned court by the Income-tax Officer against the respondents on the ground that with the common intention to all of them and with a view to avoid tax liability, the firm and its partners had concealed the income of the firm in their original return by not submitting the true statement of accounts. The respondents were consequently summoned to face trial. After recording the pre-charge evidence, the trial court framed the charges agai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unished for the charges framed against them. Learned counsel then contended that even if during the assessment, the assessee had agreed to pay the tax on enhanced assessment, this again would not be a ground to absolve the respondents of their criminal act which is separate in nature for all purposes and it rather goes to show that the first return was not depicting the true accounts and in fact certain material facts were concealed in it in order to avoid paying of tax. Consequently, the impugned judgment of acquittal is not sustainable in the eyes of law, learned counsel so submits. In support of his arguments he has relied upon P. Jayappan v. S.K. Perumal, First ITQ [1984] 149 ITR 696 (SC) and C. G. Balakrishnan v. ITQ [1988] 171 ITR 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. Learned counsel then submitted that legally also once the revised return was filed by the assessee, the earlier return becomes null and void and as such it cannot now be said that there was wilful concealment of the income by the assessee. Learned counsel, however, fairly concedes that before filing the return in August, 1982, the assessee has not moved any application for looking into the Udhar Bahis or other accounts taken by the Income-tax Department in the survey conducted in September, 1979 and filed the return in routine on the basis of certain account books which he was maintaining after the survey. He in support of his arguments has relied upon Kuldip Rai Chopra, ITO v. Sohan Singh Dhiman [1977] 110 1m 521 (P H) and Jog Raj v. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned counsel for the appellant, also does not dispute this factual position. Admittedly, the assessment year was covering the financial year 1979-80, i.e., ending March 31, 1980. In my view, respondent No. 2 filed the return on the basis of some account books which he had been maintaining after September, 1979, up to March, 1980, because prior to September, 1979, all the account books were taken into custody by the Income-tax Department. For this reason, he might have declared his income as Rs. 39,368. No doubt, some fault lies with the assessee for not moving an application before the Department for taking the Udhar Bahis and account books back for the purposes of filing the proper return but this by itself would not be a ground to say ..... X X X X Extracts X X X X X X X X Extracts X X X X
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