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2022 (12) TMI 698 - HC - Income TaxContinuation of prosecution proceedings when levy of penalty has been deleted - Offence u/s 276C (1), 277 and 278E of the Income Tax Act - alleged that during course of search and seizure operation, it was found that the petitioner had claimed huge Bogus Long Term Capital Gain - petitioner is the Karta of Murari Lal Jalan HUF and search and seizure operation was conducted in the residence of the petitioner under section 132(1) - HELD THAT:- It is an admitted fact that the petitionerwas imposed penalty which was affirmed by the First Appellate Authority and the Second Appellate Authority by order has been pleased to set aside penalty imposed upon the petitioner. In the second case the penalty has not been imposed upon the petitioner. The question framed in the case of K.C. Builders [2004 (1) TMI 7 - SUPREME COURT] are the identical which is subject matter of these cases. Particularly the law point framed has been clearly held that once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under section 276C is automatic. The case of the petitioners is fully covered with the case of K.C. Builders (supra) In the case in hand the penalty was quashed on merit. Thus the entire criminal proceeding including order taking cognizance passed by the Special Sub-Judge-VII, Economic Offence, Ranchi are hereby quashed.
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