TMI Blog2023 (11) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... thus seeked to quash the proceedings pending on the file of Additional Chief Metropolitan Magistrate (E.O.II) Egmore, Chennai HELD THAT:- Admittedly, the petitioners filed an application before the Settlement Commission as per Section 245C of the Income Tax Act, on 22.01.2018. Whereas, the prosecution was initiated two years before viz., 17.11.2016 itself. Therefore, the provisions under Section 245I of the Income Tax Act is not applicable. Further, the prosecution proceedings under Income Tax Act were launched two years before and the factum of pending prosecution was not brought to the notice of the Settlement Commission made by the petitioners that too in the year 2018. Further, the petitioners concealed the fact of such pending prosecu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Company engaged in Restaurant business and catering of food. It was incorporated and the second accused is one of the Directors cum Shareholders of the first accused. On information, the accused was under-reporting the sales. Apart from the sales suppression, the accused had also been underreporting the expenses, implying that it has been incurring expenditures out of the income which is unreported. They had not been preparing the financial/return of income in accordance with proper books of accounts, but offering only a manufactured sum of profit or income. Therefore, the accused had suppressed both the income and expenditure, thereby evading tax. Hence, search was conducted as contemplated under Section 132 of the Income Tax Act, on 24 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... return of income (Rs.) Additional Income disclosed (Rs.) 2010-11 3,97,825 60,00,000 2011-12 2,24,583 30,00,000 2012-13 2,95,796 32,00,000 2013-14 6,02,364 16,00,000 2014-15 Not filed 50,00,000 2015-16 Not filed --- 2016-17 Not filed 28,00,000 Total 2,16,00,000 (ii) In the hands of SS Hyderabad Briyani P Ltd.: Assessment Year Income reported in the return of income (Rs.) Additional Income disclosed (Rs.) 2010-11 3,137 2,00,000 2011-12 2,06,359 3,00,000 2012-13 2,16,053 4,00,000 2013-14 2,34,586 23,00,000 2014-15 3,12,719 16,00,000 2015-16 Not filed 73,00,000 2016-17 Not filed 63,00,000 Total 1,84,00,000 5. Accordingly, additional income were admitted by them for the respective financial years. Therefore, the original returns filed by the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itional income. They had paid income tax and thus, they had satisfied the provisions under Section 245 H of the Income Tax Act. The Settlement Commission had granted immunity from prosecution under the Income Tax Act to the petitioners for the assessment years which are settled by the said order. He further pointed out that as per Section 245 I of the Income Tax Act, the order passed by the Settlement Commission shall be conclusive. Therefore, the prosecution initiated as against the petitioners cannot be sustained. 8. The learned Special Public Prosecutor for the respondent filed counter and submitted that there are incriminating materials seized during the search and statement of accounts itself speaks by itself and as such, during the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [and also (either wholly or in part) from the imposition of any penalty] under this Act, with respect to the case covered by the settlement: [Provided that no such immunity shall be granted by the Settlement Commission in cases where the proceedings for the prosecution for any such offence have been instituted before the date of receipt of the application under section 245C:] [Provided further that the Settlement Commission shall not grant immunity from prosecution for any offence under the Indian Penal Code (45 of 1860) or under any Central Act other than this Act and the Wealth-tax Act, 1957 (27 of 1957) to a person who makes an application under section 245C on or after the 1st day of June, 2007.] 11. Further, the prosecution proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X
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