9911796707
TMI Blog1994 (2) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... egations in it are briefly as follows: The accused is assessed to income-tax. He is doing business as a jeweller in Coimbatore. There was a search operation under section 132 of the Income-tax Act, 1961, in the business premises of the accused on June 9, 1980, and substantial unaccounted stock representing corals and pearls were seized and the same was estimated at Rs. 2,50,000. The accused filed a return of the income for the assessment year 1981-82 on October 27, 1982, admitting a total income of Rs. 1,89,720, which included only Rs. 1,00,000 representing the value of unaccounted stock seized. In the meantime, the Departmental probe was in progress and a revised return of income was filed on August 3, 1983, fearing Departmental action, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be false and did not believe it to be true, the accused has committed an offence punishable under section 277 of the Income-tax Act. Hence the complaint. Mr. Kadarkarai, learned counsel appearing for the petitioner, would submit that the Income-tax Appellate Tribunal, Madras, had set aside the penalty imposed under section 271(1)(c) of the Income-tax Act on the premises that it is not possible to consider that the assessee had been deemed to have concealed the income under Explanation 5 and for other reasons and so the entire basis of prosecution is set aside by the order of the said Tribunal and hence the prosecution is liable to be quashed. He would further submit that in view of the acceptance of the revised return, it has to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aint. The ratio of this ruling is applicable to this case. Section 279(1A) of the Income-tax Act reads as follows : "279. Prosecution to be at the instance of the Commissioner.-.... (1A) A person shall not be proceeded against for an offence under section 276C or section 277 in relation to the assessment for an assessment year in respect of which the penalty imposed or imposable on him under clause (iii) of sub-section (1) of section 271 has been reduced or waived by an order under section 273A." Section 273A of the said Act relates to the power to reduce or waive penalty, etc., in certain cases. In this case, there was no reduction or waiver of the penalty in pursuance of section 273A of the Act. Furthermore, the Income-tax Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Tribunal, the criminal proceedings are liable to be quashed. Regarding the second submission of Mr. Kadarkarai that because the revised return was accepted, it must be held that there was no suppression of income. In paragraph 5 of the complaint, it is stated that on October 27, 1982, the accused filed a return of income only for Rs.1,89,720 which included only Rs. 1 lakh representing the value of unaccounted stock. It is further alleged that fearing departmental action, on August 31, 1983, the accused filed a revised return and admitted the value of corals and pearls, etc., at Rs. 2,50,000. So simply because the revised return was accepted on August 31, 1983, it would not amount to an admission that there was no concealme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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