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TMI Blog2023 (11) TMI 1234X X X X Extracts X X X X X X X X Extracts X X X X ..... opolitan Magistrate (E.O.II) Egmore, Chennai which were initiated for different period of assessments for the offence punishable under Section 277 of the Income Tax Act, 1961. 2. E.O.C.C.No.185 of 2016 has been filed for the assessment year 2010-2011, E.O.C.C.No.186 of 2016 has been filed for the assessment year 2011-2012, E.O.C.C.No.187 of 2016 has been filed for the assessment year 2012-2013, E.O.C.C.No.188 of 2016 has been filed for the assessment year 2013-2014 and E.O.C.C.No.189 of 2016 has been filed for the assessment year 2014-2015. 3. The crux of the complaint is that the first accused is a Company engaged in Restaurant business and catering of food. It was incorporated and the second accused is one of the Directors cum Sharehold ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h of the outlets from the date of the commencement of business operation at each of the outlet. In the process of reverse working 15% allowance has been given for each of the year. Accordingly, the total sales of the Company from the financial year 2008-2009 to the financial year 2015 to 2016 is Rs.116,41,98,200/- and the net profit was arrived as Rs.22,65,09,152/-. It was confronted with the accused and the second accused had admitted a sum of Rs.4 Crores as undisclosed income and gave year wise break-up detailed as follows:- (i) In the hands of Sh.Abdul Samad: Assessment Year Income reported in the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to deprive the exchequer by evading the taxes in the manner understating the correct income. Therefore, the respondent initiated prosecution for the offence under Section 277 of the Income Tax Act for different assessment years. 7. The learned counsel for the petitioners would submit that mere statement cannot be a basis for evasion, unless and until they are substantiated by any incriminating material seized during the search. Therefore, the prosecution is unsustainable against the petitioners. That apart, the accused approached before the Settlement Commission and as per the proceedings of the Settlement Commission dated 22.01.2018, the income tax was paid and disclosed all the facts and materials for computation of its additional income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 245 H(1) of the Income Tax Act as follows:- "245H. Power of Settlement Commission to grant immunity from prosecution and penalty.-(1) The Settlement Commission may, if it is satisfied that any person who made the application for settlement under section 245C has cooperated with the Settlement Commission in the proceedings before it and has made a full and true disclosure of his income and the manner in which such income has been derived, grant to such person, subject to such conditions as it may think fit to impose 1[for the reasons to be recorded in writing], immunity from prosecution for any offence under this Act or under the Indian Penal Code (45 of 1860) or under any other Central Act for the time being in force 2[and als ..... X X X X Extracts X X X X X X X X Extracts X X X X
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