Law:

Section:

Section 276C(1) of the Income-tax Act, 1961 - Offences and prosecutions - Wilful attempt to evade tax, etc. - Assessment year 1881-82 - During pendency of assessment proceedings of assessee-company, central excise authorities in course of search of its premises found that certain consignments of tubelights taken out from factory premises were not duly accounted for - On basis of this information passed on by central excise authorities, ITO required assessee to show that these goods had been duly accounted for in its account books - On failure of assessee to do so ITO filed a criminal complaint under sections 276C(1) and 278 against assessee and its directors, etc. - Whether assessee's prayer for staying trial of criminal complaint till finalisation of assessment proceedings could not be granted as section 276C(1) had nothing to do with assessment proceedings pending before ITO - Held, yes Facts During the pendency of the assessment proceedings of the assessee-company, the central excise authorities searched its premises and found that certain consignments of tubelights taken out from the factory premises were not accounted for. The assessee failed to show before the income-tax authorities to which the said information was passed on, that these goods had been accounted for in its account books. Under the circumstances, the ITO filed a complaint under sections 276C(1) and 278 against the assessee-company and its directors, etc. While the criminal complaint was pending trial before the Magistrate, the assessee and others filed a revision petition praying, inter alia, that the trial in the case be stayed till the assessment proceedings were finalised by the income-tax authorities. Held Section 276C has nothing to do with assessment proceedings pending before the income-tax authorities. The trial in the criminal cases should take priority and it is always desirable that evidence which the prosecution has to lead in support of the complaint should be led as early as possible so that the evidence is not lost with the passage of time. The interests of justice require that the criminal trial should proceed expeditiously and be completed at the earliest. So there was no…

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