Law:

Section:

Sections 276C and 277 of the Income-tax Act, 1961 - Offences and prosecutions - Wilful attempt to evade tax - Assessment year 1979-80 - Assessee, a partnership-firm, through one of its partners, filed its return - Assessee-firm had a sister concern working in same premises - IAC (Assessment) treated certain amounts credited in assessee's account books through encashment of self-cheques on 11-11-1978, 20-1-1979 and 15-3-1979 as assessee's undisclosed income as these cheques were got encashed from bank on 13-11-1978, 22-1-1979 and 16-3-1979 respectively - Commissioner (Appeals) as well as Tribunal affirmed order of IAC (Assessment) - Thereupon, ITO filed complaint against assessee-firm and its partners for their prosecution under sections 276C and 277 - Whether in view of fact that there were no debit entries in books of sister concern on 11-11-1978, 20-1-1979 and 15-3-1979 corresponding to credit entries in books of assessee-firm on these dates through encashment of self-cheques, prosecution launched against firm under sections 276C and 277 was justified - Held, yes Fact For the relevant assessment year 1979-80, the assesse firm consisting of five partners, including two ladies, and a minor admitted to the benefits of partnership, through one of its partners, namely, V, filed, the return. The assessee-firm had a sister-concern, which was also working in the same premises. The IAC (Assessment) held that credits of certain amount on 11-11-1978, 20-1-1979 and 15-3-1979 in the account books of the assessee through encashment of self-cheques were, in fact, undisclosed income of the assessee, as these cheques were got encashed from the bank on 13-11-1978. 12-1-1979 and 16-3-1979 respectively. The Commissioner (Appeals) as well as the Tribunal affirmed the order of the IAC (Assessment). The ITO accordingly, filed against the assessee-firm and its partners a complaint before the Chief Judicial Magistrate for their prosecution under sections 276C and 277. The Chief Judicial Magistrate issued summons to the petitioners through non-bailable warrants. On writ, the petitioners prayed for quashing the complaint on the grounds (i) that the assessee-firm had got these…

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