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2021 (12) TMI 879 - HC - Income TaxProsecution u/s 276C(1) - allegation against Petitioner is of evasion of tax and, therefore, ingredients of the offence alleged against Petitioner are, prima facie, satisfied - order of sanction at Ex. ‘D-3’ stating that Petitioner has failed to substantiate the claim of purchases to be treated as bogus - HELD THAT:- It is well settled that before granting sanction the authority must have before it the necessary report and the material facts which prima facie establish the commission of offence alleged for and that the sanctioning authority would apply its mind to those facts. The order of sanction is only an administrative act and not a quasi-judicial one nor is a lis involved. Therefore, the order of sanction need not contain detailed reasons in support thereof. But the basic facts that constitute the offence must be apparent on the sanction order and the record must bear out the reasons in that regard. A perusal of the sanction order clearly indicates that the sanctioning authority appears to have applied its mind to the facts placed before it and considered them and then granted sanction. Perusal of the complaint launched against Petitioner also disclose allegations that Petitioner failed to substantiate the claim of purchases amounting to ₹ 2,74,03,016/- and the assessing officer held the purchases to be bogus and made an addition of ₹ 34,25,377/(12.5% of the bogus purchases). On Appeal by Petitioner, CIT (A) vide order dated 19.12.2016 confirmed the addition. ITAT also confirmed said order. It is stated that, therefore, Petitioner has willfully and intentionally evaded his tax liability. Taking into consideration accusations in the complaint and material on record, we are satisfied that, prima facie, the ingredients of the offences under Section 276C(1) of the said Act are satisfied. Assessee Petition dismissed.
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