TMI Blog1994 (5) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... , Patiala, in a revision petition against the order of the Chief Judicial Magistrate. The Income-tax Officer, Faridkot, filed a complaint against the petitioners under section 276C read with section 277 of the Income-tax Act, 1961 (for short, "the Act"). On the basis of the pre-charge evidence led by the complainant, the petitioners were charge-sheeted under the abovesaid provisions on July 21, 1989, for making false entries in the account books and also for making false verification regarding the stocks so as to evade income-tax. The case was thereafter adjourned for evidence of the complainant. On December 6, 1989, the petitioners filed an application before the trial court stating that since discrepancies to the tune of Rs. 39,485 in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cation of the stock to the tune of Rs. 39,485 has not been upheld by the appellate authority. In other words, the petitioners claim that the charge framed under section 277 of the Act against them for not making proper verification of stocks is not legally maintainable in view of the order of the appellate authority. The complainant has stated in the reply that the Department has filed a second appeal against the order of the Commissioner (Appeals) and the matter is still sub judice in the Tribunal and, therefore, the application for dropping the criminal proceedings was not tenable. After hearing counsel for the parties, the trial court held that even if the order passed by the appellate authority be taken at its face value, the same did n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appan v. S. K. Perumal, First ITO [1984] 149 ITR 696, wherein it has been held by the Supreme Court as under : "A mere expectation of success in some proceeding in appeal or reference under the Act cannot come in the way of the institution of the criminal proceedings under sections 276C and 277 of the Act. In the criminal case all the ingredients of the offence in question have to be established in order to secure the conviction of the accused. The criminal court no doubt has to give due regard to the result of any proceeding under the Act having a bearing on the question in issue and in an appropriate case it may drop the proceedings in the light of an order passed under the Act, It does not, however, mean that the result of a proceeding ..... X X X X Extracts X X X X X X X X Extracts X X X X
|