TMI Blog2014 (6) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... der the Act return a finding that there is no concealment of income, the prosecution is not sustainable on the allegation of concealment of income – the Tribunal held that there is no concealment and the return filed by the assessee was voluntary, filed in good faith and before the detection of any concealment - the penalty imposed u/s 271 (1) (c) of the Act has been set aside - once the Tribunal of a Department holds that there is no concealment of income on part of the accused and the penalty is deleted, the very basis of the complaint is knocked down and continuation of complaint will be an abuse of the process of the Court – thus, the criminal complaint and the proceedings are set aside – Decided in favour of Assessee. - CRR No. 440 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /-. The Commissioner of Income Tax (Appeals) vide order dated April 5, 1990 confirmed the order of penalty. After the order of penalty was passed by the Assessing Officer and same was confirmed by Commissioner of Income Tax (Appeals) vide order dated April 5, 1990, a complaint dated January 29, 1993 under Sections 276 C and 277 read with Section 278 B of the Act based on the order dated July 24,1989 of the Income Tax Officer was filed in the Court of Sub Divisional Judicial Magistrate, Ludhiana. Meanwhile, the petitioners had field appeal i.e. ITA No. 1192/Chandi/90 against the order dated April 5, 1990 passed by Commissioner of Income Tax (Appeals) before the Income Tax Appellate Tribunal, Chandigarh Bench. The Income Tax Appellate Trib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioners filed an application under Section 245 (2) Cr.P.C. before the Chief Judicial Magistrate, Ludhiana, for their discharge and for quashing of the complaint. The trial Court vide order dated November 29, 2000, accepted the application; dismissed the complaint filed by the respondent and discharged the petitioners. In revision petition filed by Income Tax Officer, Khanna, the order dated November 29, 2000 has been set aside. The revisional Court observed that the petitioners had originally filed return showing income of Rs.23570/- and introduced three Cash Credit, amounting to Rs.90000/- in the name of three different persons. On examination of the income tax return and relevant material i.e. cash credits, the revisional Court forme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eard learned counsel for the petitioners. In the present case, criminal prosecution had been launched against the petitioners on January 29, 1993 on the ground that they had concealed their income for the assessment year 1988-89. Vide order dated June 22, 1994, the Appellate Tribunal, Chandigarh Bench has held as follows:- On the facts of the case we hold that return by the assessee was a voluntary return filed in good faith and before the detection of any concealment by the Assessing Officer. The said order dated June 22, 1994 was upheld by the High Court. It is a settled principle of law that a decision of Adjudicatory Authority which in the present case was Appellate Tribunal, cannot be ignored when it has become conclusive while ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecution is not sustainable on the allegation of concealment of income. Vide order of Appellate Tribunal dated June 22, 1994, it has been held that there is no concealment and the return filed by the assessee was voluntary, filed in good faith and before the detection of any concealment. Vide said order, the penalty imposed under Section 271 (1) (c) of the Act has been set aside. The learned Magistrate had, rightly appreciated that once the Tribunal of a Department i.e. Adjudicatory Authority, holds that there is no concealment of income on part of the accused and the penalty is deleted, the very basis of the complaint is knocked down and continuation of complaint will be an abuse of the process of the Court. It is not out of place to observ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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