TMI Blog2008 (3) TMI 109X X X X Extracts X X X X X X X X Extracts X X X X ..... Department has already been set aside and basis of prosecution has already gone, therefore, prosecution is not sustainable - prosecution of the petitioners is quashed - 1367 of 2007 - - - Dated:- 17-3-2008 - S. C. VYAS J. Shailendra Mukati for the petitioners. R. L. Jain for the respondent. JUDGMENT 1. S. C. VYAS J.- This is a petition filed under section 482 of the Code o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, a criminal complaint against the petitioners was filed for commission of the aforesaid offences before the CJM, Ratlam. 3. It has been averred by the petitioners that penalty imposed by the Revenue was set aside by the Income-tax Appellate Tribunal, vide order dated August 20, 1993, passed in I. T. A. No. 1165/Ind/88 and in view of the judgment of the apex court reported in the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not a case of concealment of income and penalty has been set aside, then prosecution under sections 276C, 277 and 278B of the Act cannot sustain. The same analogy applies in the facts of the present case also. In the facts of the present case, the Income-tax Appellate Tribunal in I. T. A. No. 1165/Ind/88, vide order dated August 20, 1993, has held that the facts and circumstances of the case did ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal and penalty imposed by the Department has already been set aside and basis of prosecution has already gone. In these circumstances, the principles laid down by the apex court in the matter of K. C. Builders [2004] 265 ITR 562 (SC) ; [2004] 186 CTR 721 are squarely applicable in the facts of present case also and, therefore, prosecution is not sustainable. 6. Consequently, the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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