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2018 (3) TMI 51 - ALLAHABAD HIGH COURTPenalties levied u/s 271(1)(c) - prosecution u/s 276C - concealment of income - Held that:- The basis for initiating proceedings under the Income-tax laws by imposing penalty and on the criminal side by lodging criminal complaint is the same. ITAT has taken into account all the facts and circumstances of the case, plea and explanation furnished by the petitioner and the case of the Department, whereupon it has been held that the petitioner did not conceal the income. The cause for initiating criminal proceedings was alleged concealment of income and consequent order of penalty. The cause itself stands eliminated and dislodged vide judgment of the ITAT. In such circumstances, the consequences (criminal complaint) cannot be allowed to survive. The Department has accepted that income had not been concealed, therefore, there is no occasion or logic either in law or in facts to prosecute the petitioner at the instance of the Income-tax Department for the alleged concealment of income for evading Income-tax. ITAT has set aside the order of penalty and held that the petitioner had not concealed her income, under the Income-tax laws. The impugned complaint has been filed also under Income-tax laws. It would be an exercise in futility to allow prosecution of the petitioner, because in the face of the Income-tax Appellate Tribunal judgment dated May 29, 2009 the petitioner would be entitled to acquittal at a later stage in trial proceedings. Therefore, also this petition deserves to be allowed.
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