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2020 (4) TMI 760 - HC - Income TaxFailure to furnish returns of income - offences punishable under Section 276C - non-filing of Income Tax returns in terms of Sections 139(1), 142(1) or 153 of Act - sanction order being passed with prior approval for the Chief Commissioner of Income Tax - HELD THAT:- The satisfaction would be dependent on the approval of the Chief Commissioner of Income Tax is that only if the Chief Commissioner of Income Tax accorded approval for prosecution than the satisfaction of the Commissioner of Income Tax could be considered and acted upon by sanctioning prosecution. However, if the Chief Commissioner of Income Tax were to refuse permission then the Commissioner of Income Tax though satisfied could not initiate any proceedings due to the non approval by the Chief Commissioner of Income Tax. Contention of Sri Kiran Javali, that the prosecution has been initiated and sanction order came to be passed on 12.03.2014 being influenced by the Chief Commissioner of Income Tax, though may not be entirely correct but however does merit consideration since no sanction could be given and prosecution initiated if the Chief Commissioner of Income Tax refused permission, the order dated 12.03.2014, can therefore be said to be an order of the Chief Commissioner of Income Tax, rather than the Commissioner of Income Tax. The Chief Commissioner of Income Tax is not the sanctioning authority. Even the approval dated 10.02.2014 does not indicate any application of mind by the Chief Commissioner of Income Tax nor is it signed by the Chief Commissioner of Income Tax. Hence, even if it were to be assumed that Chief Commissioner of Income Tax was the sanctioning authority there is no subjective satisfaction by the Chief Commissioner of Income Tax for granting such sanction. Process and procedure and methodology followed by the Commissioner of Income Tax being not that as contemplated under Section 279 - The sanction order being passed with prior approval for the Chief Commissioner of Income Tax, the same is not tenable in law and the entire proceedings initiated thereafter including those in C.C.No.219/2014 cannot be countenanced in law. Therefore, the sanction letter dated 12.03.2014 and the proceedings in C.C.No.219/2014 pending on the file of the JMFC III Belagavi are hereby quashed.
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