TMI Blog2015 (2) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Income Tax Appellate Tribunal, continuation of criminal proceedings against the petitioner in relation to the same proceedings, would be nothing but an abuse of process of law.- Decided in favour of assessee. - Crl. Misc. No. M-37047 of 2013 - - - Dated:- 9-2-2015 - MRS. SABINA, J. For the Appellant: Sanjeeva Gupta, Advocate For the Respondent: Rajesh Sethi, Advocate JUDGEMENT SABINA, J. Petitioner has filed this petition under Section 482 of the Code of Criminal Procedure, 1973 for quashing of criminal complaint No. 139 dated 31.3.2000 (Annexure P-1) and orders dated 14.12.2011 (Annexure P-2) and 13.9.2013 (Annexure P-3) and all the subsequent proceedings arising therefrom. Case of the complainant, as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals). Hence, the criminal proceedings qua the same proceedings, were liable to be quashed. In support of his arguments, learned counsel for the petitioner has placed reliance on 'K.C.Builders and another versus Assistant Commissioner of Income-tax, Income Tax Reporters (Vol. 265) 562. The Apex Court has held as under:- In our view, once the finding of concealment and subsequent levy of penalties under section 27(1)(c) of the Act has been struck down by the Tribunal, the Assessing Officer has no other alternative except to correct his order under section 154 of the Act as per the directions of the Tribunal. As already notices, the subject matter of the complaint before this court is concealment of income arrived at on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, mentioned above, wherein, it has been held that if the penalty proceedings have been set aside in the deparmental proceedings then the very basis of launching of the prosecution against the assessee stands knocked down. In such facts, the Supreme Court had quashed the proceedings initiated under the Income-tax Act against the assessee. In view of the said judgment, I find that the prosecution against the petitioner is an abuse of the process of law. The very basis of penalty has been struck down by the authorities under the Act. Learned counsel for the respondent, on the other hand, has opposed the petition and has submitted that petitioner had made a false statement during the search and seizure operation. Hence, criminal proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case against the accused. (4) Where, the allegations in the FIR do not constitute a cognizable offence but constitute only a non-cognizable offence, no investigation is Crl. Misc. No. M-37047 of 2013 -6 - permitted by a Police Officer without an order of Magistrate as contemplated under Section 155(2) of the Code. (5) Where the allegations made in the FIR or complaint are so absurd and inherently improbable on the basis of which no prudent person can ever reach a just conclusion that there is sufficient ground for proceeding against the accused. (6) Where there is an express legal bar engrafted in any of the provisions of the Code or the concerned Act (under which a criminal proceeding is instituted)to the institution ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication for settlement before the Income Tax Settlement Commission and offered undisclosed income of ₹ 3,55,000/- for settlement in addition to undisclosed income of ₹ 25,000/- offered in the block return filed before the Assessing Officer. Application moved by the petitioner was accepted and the income of the petitioner was settled at ₹ 3,80,000/- including ₹ 25,000/- offered before the Assessing Officer vide order dated 20.1.2008. However, by passing the order dated 22.1.2008, Income Tax Settlement Commission declined to grant immunity to the petitioner from penalty and prosecution. The said order was upheld in an appeal by the Commissioner, Income Tax (Appeals). Petitioner approached the Income Tax Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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