TMI Blog1978 (5) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... In 1959, this firm consisted of seven partners, viz ., Uttam Chand Chopra, Bihari Lai Chopra, Sudarshan Lai Chopra, Hira Lai Chopra, Vijay Kumar Chopra, Ashok Kumar Chopra and Janak Rani. The firm was granted registration by the ITO for the assessment year 1960-61 and the registration continued to be granted for the assessment years 1961-62 to 1966-67. Therefore, a new partnership deed was executed on 18th February, 1967, when one more partner, namely, Devinder Kumar Chopra, joined the firm with effect from 1st April, 1966. On the basis of this deed, the firm was granted registration by the ITO for the assessment year 1967-68 and the registration continued to be granted for the assessment years 1968-69 and 1969-70. On the death of Bihari L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raised an objection before the learned Magistrate, but he did not agree with the contentions of the petitioners and rejected their objection, vide his order dated 2nd February, 1976. It is against this order that the petitioners have come up under s. 482, Cr. PC, for quashing the proceedings on the complaint. It is contended on behalf of the petitioners that the proceedings pending before the Magistrate amount to an abuse of process in view of the findings of the Income-tax Appellate Tribunal and hence the same may not be allowed to continue. I do not find any merit in this contention. The proceedings before the Magistrate are entirely independent of the findings of the Income-tax Appellate Tribunal. The findings of the Income-tax Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not act on the basis of the law contemplated under sub-section (4A) of section 271, but does so on the basis of the existence of the conditions on which penalty may be imposable. If it finds that the penalty is not legally imposed, it sets aside the order. The order of the Tribunal is really the order of the assessing authority not imposing a penalty. That order is not contemplated by sub-section (1A) of section 279 as the order mentioned in that sub-section is the order which is passed under sub-section (4A) of section 271 and not the order not imposing the penalty. It contemplates waiver and not non-imposition of penalty. The order of the Tribunal setting aside the penalty may be utilised as a piece of evidence to show that there was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld govern the exercise of this inherent juridiction. Some of the categories of cases where the inherent jurisdiction to quash proceedings can and should be exercised are: (i) Where it manifestly appears that there is a legal bar against the institution or continuance of the criminal proceeding in respect of the offence alleged. Absence of the requisite sanction may, for instance, furnish cases under this category. (ii) Where the allegations in the first information report or the complaint, even if they are taken at their face value and accepted in their entirety, do not constitute the offence alleged; in such cases no question of appreciating evidence arises; it is a matter merely of looking at the complaint or the first information ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings or the allegations in the complaint, even if taken at their face value or accepted in entirety do not constitute the offence, or there is no legal evidence adduced or the evidence adduced clearly fails to prove the charge or there is an abuse of the process of the court. Admittedly there is no legal bar against the filing or continuation of the criminal proceedings in this case and prima facie the complaint also does disclose the alleged offence and even the counsel for the petitioners agree that the complaint prima facie discloses the offence under the various sections of the IPC. Admittedly, no evidence has been adduced so far by the revenue, as the proceedings before the Magistrate were stayed at the instance of the petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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