TMI Blog2012 (9) TMI 291X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 271(1) (c) was issued in the course of assessment proceedings, thus the assumption of jurisdiction by the AO for initiation of impugned penalty proceedings is not valid. Since the order whereby penalty was imposed on the petitioners had been quashed by the Tribunal, the criminal prosecution of the petitioners was liable to be quashed - in favour of assessee. - Crl. Misc. No. M-22921 of 2011 (O&M), Crl. Misc. No. M-32536 of 2011 (O&M) - - - Dated:- 27-8-2012 - Mrs Sabina, J. For Appellant : Mr. B S. Sra , Adv For Respondent : Mr. Vivek Sethi, Adv JUDGEMENT Per : Sabina, J : Vide this order, the above mentioned two petitions would be disposed of as the petitioners have sought quashing of the criminal complaint ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssued to them qua penalty of Rs. 1,04,100/-. The Commissioner of Income Tax (Appeals) vide order dated 18.3.2005 confirmed the levy of penalty. In appeal filed by the accused before Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, the imposition of penalty was quashed on legal grounds vide order dated 8.6.2007. In appeal filed by Income Tax Department against the order of Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, the appeal was dismissed in terms of order passed in ITA No. 180 of 2009 titled as The Commissioner of Income Tax, Jalandhar-II versus Smt. Parmatma Kaur village Langia Goraya, District Jalandhar. As per the said case, the matter was referred to the Tribunal for fresh decision on the issue of penalty in acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants cannot survive for further consideration. In our view, the High Court has taken the view that the charges have been framed and the matter is in the stage of further cross-examination and, therefore, the prosecution may proceed with the trial. In our opinion, the view taken by the learned magistrate and the High Court is fallacious. In our view, if the trial is allowed to proceed further after the order of the Tribunal and the consequent cancellation of penalty, it will be an idle and empty formality to require the appellants to have the order of the Tribunal exhibited as a defence document inasmuch as the passing of the order as aforementioned is unsustainable and unquestionable. Learned counsel has also placed reliance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied that any person ------ In the present case, the A.O. has issued the impugned penalty proceedings notice on 24.2.1994. the survey under section 133A of the Act was conducted at the business premises of the assessee on 2.2.1994. In the course of such survey operation, it was found that the assessee failed to produce regular books on account, on the basis of which relevant accounts, were prepared by the assessee and the impugned return of income filed. The Department found certain incriminating documentary evidence indicating concealment of income, which was made the basis for issue of the said notice of initiation of penalty proceedings under section 271(1)(c) of the Act. The revenue has not brought on record, the date of conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X
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