TMI Blog2018 (1) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... authority initiated proceedings under law - the department has accepted the receipt of Form-10 filed by A1 firm intimating that on account of the fact that two existing partners have retired from 31.03.2003, the constitution has been changed from partnership to proprietory concern w.e.f. 01.04.2003, the petitioner, who was the erstwhile partner, cannot be mulcted with any liability. Even if it is assumed that the petitioner retired from the partnership firm from on 01.10.1999, there is absolutely nothing on record to show that it was duly intimated to the department forthwith as required under law - the tax evasions relate prior to the said communication. Criminal revision fails and is dismissed. - Criminal Revision Case Nos.1111, 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an intelligence tip off, when the officials of the department compared the sales data made available by the Indian Oil Corporation with the sales turnover submitted by A1 firm, the authorities found that there were a large scale tax evasion on the part of the accused. The assessing authority doubted the correctness and completeness of the returns filed by the accused, therefore issued a pre assessment notice to the accused on 30.06.2007 which was served on 30.06.2007 jointly and severally on A1 to A3. Despite sufficient opportunities, the accused did not come forward with any objection to the pre assessment notice and therefore, the assessing authority issued second notice dated 04.10.2007. But, there was no response from the accused. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tners shall indemnify and keep indemnified the retained partner against all, loss, costs, charges and expenses that the retiring partner may suffer or incur on account of any claim being made against him as a partner of the firm. 5. The said discharge petitions were sternously opposed by the complainant stating that the retirement of A2 from the partnership firm was not duly intimated to the department as required under law. The petitioner in such circumstances cannot absolve from his tax liability. There are prima facie material to proceed against the petitioner for suppression of actual tax turn over and it is for the petitioner to establish during trial that he retired from the partnership firm as early as on 01.10.1999 and on that gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resigned from the partnership firm on 01.10.1999 , absolutely, there was no communication from the petitioner regarding his retirement and the department letter upon which the petitioner placed reliance was of the year 2003 and that application was not accepted by the department. Even assuming that the petitioner retired in the year 2003, the petitioner cannot escape from his liability which had occurred much prior to the year 2003. This is a fact in issue which needs to be proved by letting in oral and documentary evidence. The trial court having appreciated the available materials, rightly concluded that they are all matters to be decided in trial based on the evidence, both oral and documentary, evidence being let in by the parties and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the erstwhile partner, cannot be mulcted with any liability. 14. Even if it is assumed that the petitioner retired from the partnership firm from on 01.10.1999, there is absolutely nothing on record to show that it was duly intimated to the department forthwith as required under law. The petitioner heavily placed reliance on an internal communication, appears to be an office note of the department, dated 08.04.2003, which shows that on account of retirement of two partners, the constitution has been changed from partnership to proprietory concern w.e.f 01.04.2003. This fact is also borne out of records. But, the tax evasions relate prior to the said communication. Furthermore, the department took a stand that application was not accep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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