Fabricated account books and suppressed sales can constitute false evidence, attempt to cheat, and tax evasion where overt acts are shown.

Fabrication of an account book with suppressed sales, prepared for use in income-tax proceedings, was treated as fabrication of false evidence because the offence is complete once a false document is made with the intention that it be used in a judicial proceeding. The same conduct also supported attempt to cheat, as the fabricated record, prior production before tax authorities, and delayed return filing showed overt acts beyond mere preparation. Concealment of turnover through the fabricated account book further established an attempt to evade tax; later filing of returns did not negate the earlier concealment. The acquittal was set aside and conviction and concurrent sentences were imposed.

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Issues: (i) whether preparation of a false account book with suppressed sales amounted to fabrication of false evidence punishable under section 193 of the Indian Penal Code, 1860; (ii) whether the same conduct amounted to an attempt to cheat punishable under section 420 read with section 511 of the Indian Penal Code, 1860; and (iii) whether the conduct disclosed an attempt to evade tax punishable under section 276C(1)(i) of the Income-tax Act, 1961.

Issue (i): whether preparation of a false account book with suppressed sales amounted to fabrication of false evidence punishable under section 193 of the Indian Penal Code, 1860.

Analysis: A false entry or fabricated document made with the intention of using it in a judicial proceeding is complete fabricating false evidence even if the document is not actually used. The account book contained suppressed sales and was treated as a fabricated record prepared for use in income-tax proceedings, which are judicial proceedings. Prior production of the book before another tax authority also showed its intended use for taxation purposes.

Conclusion: The offence under section 193 of the Indian Penal Code, 1860 was made out against the respondent.

Issue (ii): whether the same conduct amounted to an attempt to cheat punishable under section 420 read with section 511 of the Indian Penal Code, 1860.

Analysis: An attempt is not confined to the last proximate act; it is enough if the accused has formed the intention, made preparation, and done an act towards commission of the offence. The fabricated account book, coupled with its production before the commercial tax authorities and the prolonged failure to file the return, showed conduct directed towards deceiving the income-tax authorities and not a mere stage of preparation.

Conclusion: The offence of attempt to cheat under section 420 read with section 511 of the Indian Penal Code, 1860 was established.

Issue (iii): whether the conduct disclosed an attempt to evade tax punishable under section 276C(1)(i) of the Income-tax Act, 1961.

Analysis: Concealment of real turnover through a fabricated account book and the delayed filing of returns after seizure of records indicated a deliberate move to evade tax. Subsequent filing of returns did not erase the earlier concealment or convert the conduct into voluntary disclosure. The offence was complete once the concealment and the acts in furtherance of evasion were shown.

Conclusion: The offence under section 276C(1)(i) of the Income-tax Act, 1961 was proved.

Final Conclusion: The acquittal was set aside and the respondent was convicted for the stated offences, with concurrent sentences imposed.

Ratio Decidendi: Fabrication of a false document with the intention that it be used in tax adjudication constitutes completion of the offence; an attempt to cheat or evade tax is made out once the accused, after preparation, takes overt steps manifesting a clear and proximate intention to bring about the offence.

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