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Section 276C of the Income-tax Act, 1961 - Offence and Prosecution - Willful attempt to evade tax, etc - Assessment year 1983-84 Once trial of case has commenced and only some witnesses are to be examined, proper course to be adopted by High Court would be to allow proceedings to go on de hors orders setting aside penalty proceedings by Tribunal [In favour of revenue] Once the trial of the case has commenced and only some witnesses are to be examined, the proper course at that stage to be adopted by the High Court is to allow the proceedings to go on and to come to its logical conclusion, one way or the other, and decline to interfere with those proceedings. The Assessing Officer filed complaint against the assessee for the alleged commission of the offences under section 120B read with sections 193, 196, 420 and 511 of the Indian Penal Code and sections 276C, 277 and 278. It was averred in the said complaint that a search conducted in residential and business premises revealed that the assessee had deliberately understated his income and overstated his expenditure in the profit and loss account and had understated the investment in land and building deliberately to evade tax. On the basis of that complaint, criminal proceedings were initiated against the assessee. The assessee sought to quash said proceedings contending that since the penalties levied by the Assessing Officer and confirmed by the Commissioner (Appeals) under section 273(2)(b) and 273(1)(b), had been set aside by the Tribunal, the criminal prosecution were liable to be quashed. Held that, de hors the orders setting aside the penalty proceedings by the Tribunal, the criminal proceedings can go on. In the instant case, the trial of the case had already commenced and the case was in the stage of arguments. Hence, the proceedings pending on the file of the Additional Chief Metropolitan Magistrate could not be quashed. CASES REFERRED TO Standard Chartered Bank v. Directorate of Enforcement [2006] 130 Comp Cas 341 and Asst. CIT v. N. K. Mohamed Ali [2010] 325 ITR 661 (Mad.), Dapel Investments Ltd. v. Asst. CIT [2000] 244 ITR 95 (Delhi), Amar Chand Agarwalla v. Shanti Bose [1973] 4 SCC 10 ; [1973] SCC…

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