9911796707
TMI Blog2002 (8) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ings, the respondent filed an application for dropping the criminal proceedings against her. The petitioner pleaded in the application that she is being prosecuted for an offence, that she had paid Rs. 1 lakh to Uniscan and Sonics Ltd., Chandigarh, and this amount has not been shown by the respondent in her account books. In the application, it was further pleaded that the respondent filed a revised return in which she had shown the amount, even though the respondent claimed that she came to know that Uniscans and Sonics Ltd., Chandigarh, had wrongly credited this amount, the revised return was filed to avoid the legal complications. On filing of the revised return by the respondent, the assessment was reopened and a sum of Rs. 1 lakh was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the orders passed by the courts below. Mr. N.L. Sharda, learned counsel for the petitioner, submitted that the courts below have erred in passing the order dated October 13, 1999, and June 8, 2002. He submitted that after recording the preliminary evidence, the respondent has been summoned to face the trial under section 276C/277 of the Act as the respondent has concealed the income of Rs. 1 lakh. He contended that the charge against the respondent has been framed. After framing of charge, the proceedings cannot be dropped in the midway, as there is no such provision in the Code of Criminal Procedure. He further contended that on the basis of the order passed by the Income-tax Tribunal, the criminal proceedings cannot be dropped. He also c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous stage of the case, if for reasons to be recorded by such magistrate, he considers the charge to be groundless. It has been repeatedly held by the apex court and this court that once the concealment of income has not been proved and the penalty has been deleted by the Income-tax Tribunal, then criminal proceedings cannot continue. In Procolor v. Chief Judicial Magistrate [1998] 230 ITR 849, this court in the concluding para. has held as under: "One finds oneself in complete agreement with the said view. Once the findings on the basis of which the complaint was filed have been set aside, it would be an exercise in futility for allowing the criminal complaint to continue. The very basis on which the complaint was filed no more exists. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted case of the parties that the Income-tax Appellate Tribunal has waived the penalty. The Revenue filed an application for making reference to this court. The Tribunal declined the application of the Revenue by observing as under: "On further appeal by the assessee, the Tribunal deleted the penalty for the reasons given in detail in paras. 7, 8 and 9 of the Tribunal's order relying on the decision of the Punjab and Haryana High Court in the case of Krishan Lal Shiv Chand Rai v. CIT [1973] 88 ITR 293. Since the penalty has been deleted relying on the judgment of the jurisdictional High Court in the case of Krishan Lal Shiv Chand Rai [1973] 88 ITR 293 referred to extensively in the judgment, no referable question of law arises out of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
