TMI Blog2011 (5) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... ssion is best evidence against the maker and it can be inferred from the conduct of the party - Admission implied by conduct is strong evidence against the maker but he is at liberty to prove that such admission was mistaken or untrue - By proving conduct of the accused Hem Raj in not raising any dispute at any point of time and paying the penalty, the prosecution has proved his admission of filing and signing the return - Once the prosecution has proved that, it was for the accused Hem Raj to demonstrate that he did not sign the return - There is no statutory requirement that signature on the return has to be made in presence of the Income-tax authority - Nothing has been brought in evidence by the accused Hem Raj that signature did not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessment was completed by the then Income-tax Officer under section 143(3) of the Income-tax Act for Rs. 1,47,370. 3. Further case of the prosecution is that the books of the account of the firm were taken into possession by the Sales Tax Department, which were obtained by the Income-tax Department and on its perusal discrepancies relating to entries of income, sale and purchase, bank account etc. were noticed and accordingly a notice under section 148 of the Income-tax Act (hereinafter referred to as the Act ) was issued requiring the respondents to furnish a revised return within 30 days. The respondents did not comply with the notice and thereafter notice under section 142(1) of the Act was issued and the assessee firm ultimat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onths. 6. Respondents aggrieved by their conviction and sentence preferred appeal and the Appellate Court set aside the conviction and sentence on the ground that sanction for prosecution was not valid. The Appellate Court further held that the prosecution has not been able to prove the signature of respondent No. 2 in the return filed, and hence, the conviction is bad on that ground also. The Income-tax Officer aggrieved by the acquittal of the respondents preferred appeal and the High Court by its impugned judgment upheld the order of the acquittal and while doing so observed that the sanction is valid but maintained the order of acquittal on the ground that the prosecution has not been able to prove that the return was signed/verified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ehalf of the appellant submits that the accused invited the order of the Income-tax Authority on the return so filed and aggrieved by the order of Income-tax Officer preferred appeal. According to him after the dismissal of the appeal by the Appellate Authority, the accused paid the penalty and these facts having been proved by the evidence laid by the prosecution it was for the accused to disprove that the signature on the income-tax return was not his. 8. Mr. S.S. Khanduja, learned counsel appearing on behalf of respondent submits that in the case of prosecution of an accused the onus is always on the prosecution to prove all the ingredients to bring home the act within the mischief of penal provision and the prosecution having not prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct is strong evidence against the maker but he is at liberty to prove that such admission was mistaken or untrue. By proving conduct of the accused Hem Raj in not raising any dispute at any point of time and paying the penalty, the prosecution has proved his admission of filing and signing the return. Once the prosecution has proved that, it was for the accused Hem Raj to demonstrate that he did not sign the return. There is no statutory requirement that signature on the return has to be made in presence of the Income-tax authority. Nothing has been brought in evidence by the accused Hem Raj that signature did not belong to him on the return and the penalty was paid mistakenly. We are of the opinion that the appellate court misdirected it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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