TMI Blog1993 (11) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... he prescribed form and the verification was signed by him on August 25, 1961, and the return was filed on September 8, 1961. The appellant showed his business income from firms in Delhi and Bombay. The assessment was made on October 31, 1961, by the officer concerned taking the income to be of Rs. 35,699. There is another firm, Young India and Transport Company in which the minor children of the appellant and his two employees were partners. During the course of the assessment proceeding, the assessing authority reached the conclusion that it was not a genuine firm and the instrument of partnership was invalid and inoperative. Thereafter, proceedings under sections 147 and 148 of the Act were initiated against the appellant and his assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsport Company belonged to the assessee and accordingly the appellate authority deleted the addition of Rs. 23,134 from the total income of the assessee. After the Appellate Tribunal passed the order, allowing the appeal in favour of the appellant, he filed a petition before the magistrate to drop the criminal proceedings. The magistrate by his order dated September 2, 1979, dismissed the said application and held that the prosecution has got a right to lead evidence in support of his complaint and the court can come to the conclusion whether or not any criminal offence is made out. The learned magistrate also observed that the order of the Tribunal can be taken only as evidence. Aggrieved by the same, the appellant-assessee filed an appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1984] 149 ITR 696. In the instant case, the crux of the matter is attracted and whether the prosecution can be sustained in view of the order passed by the Tribunal. As noted above, the assessing authority held that the appellant assessee made a false statement in respect of income of Young India and Transport Company and that finding has been set aside by the Income-tax Appellate Tribunal. If that is the position then we are unable to see as to how criminal proceedings can be sustained. Mr. A. Raghuvir, learned senior counsel appearing for the Department, submitted that the fact whether the firm is a genuine firm, still remains as a question to be resolved and, therefore, the proceedings cannot be quashed at this stage. We do not agre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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