TMI Blog2020 (4) TMI 270X X X X Extracts X X X X X X X X Extracts X X X X ..... aint filed in the case in hand would automatically cease after setting aside penalty imposed for the A.Ys. 1983-84 to 1988-89 since in the present case, A.Y. 1990-91 is involved. - Application U/S 482 No. - 3887 of 1994 - - - Dated:- 11-12-2019 - Sudhir Agarwal, J. For the Applicant : Shakeel Ahmad, Siddharth Singhal For the Opposite Party : A.G.A., Ashish Agrawal, Shekhar Srivastava ORDER HON'BLE SUDHIR AGARWAL, J. 1. Heard Sri Siddharth Singhal, learned counsel for applicant and learned A.G.A. for State of U.P. 2. Applicant has invoked jurisdiction of this Court under Section 482 of Code of Criminal Procedure, 1973 (hereinafter referred to as Cr.P.C. ) with a prayer to quash proceedings of Criminal Case Nos. 241 of 1994, 242 of 1994 and 243 of 1994, under Sections 35(B) of Wealth Tax Act, 1957, pending in the Court of learned Special Chief Judicial Magistrate, Allahabad. 3. Learned counsel for applicant states that penalty proceedings have been subsequently quashed and that being so, criminal proceedings cannot be maintained. 4. Facts, in brief, giving rise to present application are that Assistant Commissioner, Income Tax/ Assistant Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of net wealth under sub-section (1) of section 14 (i) for any assessment year commencing prior to the 1st day of April, 1975; or (ii) for any assessment year commencing on or after the 1st day of April, 1975, if (a) the return is furnished by him before the expiry of the assessment year; or (b) the tax payable by him on his net wealth determined on regular assessment does not exceed three thousand rupees. (Emphasis Added) 6. Applicant has filed supplementary affidavit along with an order passed by Income Tax Appellate Tribunal, 'A' Bench, Allahabad (hereinafter referred to as Tribunal ) in Wealth Tax Appeal Nos. 184 to 188(A)(d) of 1993 wherein levy of penalty under Section 18(1)(a) of Act, 1957 was challenged in respect of A.Ys. 1984-85 to 1988-89. Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flats. Construction of some projects were started in 1981-82 and completed in 1986-87. Appellant filed Return of Income therein. Cost of construction was shown as under:- Assessment Year Amount 1983-84 ₹ 4,72,860/- 1984-85 ₹ 5,77,590/- 1985-86 ₹ 7,28,531/- 1986-87 ₹ 7,03,002/- 10. Subsequently, appellant filed revised Returns as per approved Valuer's report for A.Ys. 1983-84 to 1986-87 on 04.11.1987 as earlier cost of construction was found defective as under:- Assessment Year Amount 1983-84 ₹ 8,76,000/- 1984-85 ₹ 5,42,000/- 1985-86 ₹ 13,47,229/- 1986-87 ₹ 10,37,920/- 11. Income Tax Authorities accepted revised returns and assessments were completed. Assessing Authority considered difference original return and revised income as c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es under the Income Tax Act and thus the quashing of the prosecution is automatic? (d) Whether the finding of the Income Tax Appellate Tribunal is binding upon the criminal court in view of the fact that the Chief Commissioner and the assessing officer who initiated the prosecution under Section 276-C(1) had no right to overrule the order of the Income Tax Appellate Tribunal? More so when the Income Tax Officer giving the effect to the order cancelled the penalty levied under Section 271(1)(c)? (e) Whether the High Court's order is liable to be set aside in view of the errors apparent on record? 12. Court held that Section 276(C) deals with an offence of willful attempt to evade tax; Section 277 deals with false statement in verification etc., and Section 278B deals with offences by company. Since Tribunal found that there was no concealment of income and order of penalty was quashed, prosecution under Section 276C would also automatically come to an end. Court held, when a criminal trial cannot proceed, it cannot be allowed to continue as that will amount to abuse of process of law. In this regard, relevant observations made in paras- 24 and 25 are reproduced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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