Law:

Section:

Section 276C, read with sections 277 and 278, of the Income-tax Act, 1961 - Offence and prosecution - Wilful attempt to evade tax, etc. - Assessment year 1980-81 - Assessee-firm was engaged in business of sale and purchase of timber - Pursuant to a survey under section 133A, Assessing Officer found that there was undervaluation of stock of timber and, accordingly, made addition to assessee's income and also levied penalty under section 271(1)(c) - A complaint under sections 276C, 277 and 278 was also filed against assessee and its partners - However, on appeal, Tribunal set aside order of penalty holding that addition was made on basis of mere estimate; and that there was no concealment of income - Whether since Tribunal had held that it was not a case of concealment of income, prosecution launched against assessee under sections 276C, 277 and 278 was liable to be quashed - Held, yes FACTS The assessee-firm was engaged in the business of sale and purchase of timber. During a survey conducted under section 133A at the premises of the assessee, it was found that there was undervaluation of stock of timber. Accordingly, the Assessing Officer made addition to the total income of the assessee and also levied a penalty under section 271(1)(c) on it. Subsequently, a complaint under sections 276C, 277 and 278 was filed against the assessee. On appeal, the Commissioner (Appeals) confirmed the penalty. However, on second appeal, the Tribunal set aside the order of penalty on the ground that addition was made on the basis of mere estimate wherefrom it could not be positively said that there was concealment of income. Thereafter, the assessee filed petition seeking quashing of criminal proceedings pending against it under sections 276C, 277 and 278 contending that since penalty under section 271(1)(c) had been set aside by the Tribunal, very basis of prosecution did not survive. The trial court, however, rejected the petition. The revisional court also rejected the revision application. On petition : HELD From perusal of the orders of the two courts below, it could very well be seen that both the courts had not considered the question and issue in its right perspective and…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492