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2020 (11) TMI 228 - HC - Income TaxCognizance for the offence u/s 276C(1) - enquiry by the investigation wing - unusual credit of large amount through RTGS in bank account maintained by the petitioner and funds were debited for investment in the stock market - HELD THAT:- Adjudication proceedings and the criminal prosecution can be launched simultaneously and the decision in adjudication proceeding is not necessary before initiating criminal prosecution. In the case on hand, the assessment order passed by the AO has been set aside by the Income Tax Appellate Authority - Even when the appeal was pending, the authorized representative of the petitioner submitted before the sanctioning authority and it was duly considered and accorded sanction for the reason that the prosecution proceedings are separate and distinct from the assessment or reassessment proceedings. There is no requirement under the Act that the assessment proceedings should be completed before lunching prosecution. Respondent is rightly lodged the complaint as against the petitioner for the offences under Section 276C(1) of the Income Tax Act, 1961. After the order passed by the Income Tax Appellate Authority, the Assessing Officer completed the assessment proceedings, where the total demand was reworded for ₹ 40,36,84,241/- and the net amount payable was determined at ₹ 4,21,31,164/-. After adjusting the TDS amount the tax liability and the penalty stood at ₹ 1,45,23,900/- and ₹ 4,56,94,344/- respectively by an assessment order dated 28.06.2019. It is categorically established that there was a concealment of income with a view to evade the payment of taxes. Therefore, the grounds raised by the learned Senior Counsel appearing for the petitioner are not helpful to the case on hand. This Court is not inclined to quash the proceedings in E.O.C.C.No.401 of 2018 on the file of the Court of the Additional Chief Metropolitan Magistrate, Economic Offences-II, Egmore, Chennai. The petitioner is at liberty to raise all the grounds before the trial Court.
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