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2019 (8) TMI 1637 - PATNA HIGH COURTLesser tax liability shown - offences under Sections 276C, 277 and 278B of IT Act - Offence by partnership firm - complaint is of the year 2008 with respect to some anomaly in the disclosure of the petitioners for the Assessment Year 1994-95 (Financial Year 1993-94) and also when all the tax liabilities fixed on the petitioners have been paid - HELD THAT:- No useful purpose would be served in allowing this prosecution to be continued any further. Even if the prosecution is taken to be for the purposes of retribution, sufficient penalty has been imposed upon the petitioners, which, on litigation also, has remained inviolate and the same has been paid. The tax liability also is stated to have been paid, which statement has not been disputed by the learned counsel for the Income Tax Department. In fact, it has been admitted in the counter affidavit that a “No Dues Certificate” has been given to the petitioners by the Department. Without going into the merits of the complaint with respect to the complaint being silent about the specific role played by the petitioners and the inference of culpable mental state of the petitioners in their capacity as partners of the firm, this Court, taking into account the year in which the offence was committed and the tax liability having been paid along with penalty, deems it appropriate to quash the proceedings and all such orders arising from the complaint and the order of cognizance. The offences against the petitioners are pertaining to wrong disclosure with respect to their income. Though criminal prosecution has been provided for in the Act; nonetheless the elements of the offence veer around civil liability/liability attracting penalty of tax. When the petitioners have been paying income tax on an yearly basis and have not been prosecuted for any false disclosure either earlier to this prosecution or thereafter, it would only be in the nature of harassment to the petitioners if this case is allowed to be continued. The provision contained in Section 482 Cr.P.C. stands tall amongst all provisions of the Code and non-exercise of the same also, where it is needed, results in miscarriage of justice. For the reasons aforestated, viz., finding no good ground for allowing the prosecution to continue, this Court deems it appropriate to quash the order of cognizance dated 25.07.2008 and all the criminal prosecution arising out of the same.
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