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Section 276 of the Income-tax Act, 1961 - Offences and Prosecution - Wilful Attempt to Evade Tax, etc. Where in appeal of assessee against assessment order extra income as per diary seized during search had been deleted, which was sole ground for prosecution, criminal prosecution was to be quashed [In favour of assessee] Ashok Kumar Jhunjhunwala v. State of Bihar [2009] 310 ITR 160 (Pat.) Search and seizure was made at the premises of the petitioner where a diary was recovered in which it was found that there was some additional income of the petitioner which was not explained in the income-tax return. For this concealment of income a prosecution was launched against the petitioner under sections 276C and 277. Simultaneously the assessee had filed an appeal against the assessment order. Criminal prosecution was stayed during the pendency of the appeal pending before the authorities of the Income-tax Department. Later, the appeal of the petitioner had been allowed and extra income as per diary seized during search had been deleted, which was the sole ground for prosecution. Held that the Income-tax Department did not dispute this proposition of law that when the very basis of the case has been wiped out, further proceeding of the complaint case against the petitioner shall be an abuse of the process of the court. In that view of the matter and in view of the settled legal proposition, in exercise of power under section 482 of the Code of Criminal Procedure and in the interest of justice, the entire criminal prosecution arising out of complaint had to be quashed. N.K. Agrawal for the Petitioner. S.K. Sharan for the Respondent. JUDGMENT J.N. Singh, J. - Heard Mr. N. K. Agrawal, learned senior counsel for the petitioner and Mr. S.K. Sharan, learned counsel for the Income-tax Department. 2. It appears that search and seizure was made on the premises of the petitioner where a diary was recovered in which it was found that there was some additional income of the petitioner, which was not explained in the income-tax return. For this concealment of income a prosecution was launched against the petitioner under sections 276C and 277 of the Income-tax Act, 1961, bearing…

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