False verification, sanction for prosecution, and CrPC relief in tax-evasion cases turn on knowledge, prejudice, and judicial discretion.

In prosecution for false verification under section 277 of the Income-tax Act, the note states that knowledge of the true facts and deliberate omission in the return can establish falsity, and absence of financial gain does not negative the offence. It also explains that omission of a specific question under section 313 CrPC does not vitiate conviction where the accused already knew the material facts and no prejudice is shown. The discussion further notes that sanction under section 279 is valid where the Commissioner considers the relevant papers and decides to prosecute, that section 360 CrPC may be declined in deliberate tax-evasion cases, and that sentences may be directed to run concurrently under section 427 CrPC in appropriate cases.

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Issues: (i) Whether omission to put a specific question under section 313 of the Code of Criminal Procedure, 1973 caused prejudice so as to vitiate the conviction; (ii) whether the petitioner knowingly made a false statement in verification attracting section 277 of the Income-tax Act, 1961; (iii) whether the sanction for prosecution under section 279 of the Income-tax Act, 1961 was invalid for want of proper application of mind; (iv) whether the petitioner was entitled to the benefit of section 360 of the Code of Criminal Procedure, 1973; and (v) whether the sentences should run concurrently under section 427 of the Code of Criminal Procedure, 1973.

Issue (i): Whether omission to put a specific question under section 313 of the Code of Criminal Procedure, 1973 caused prejudice so as to vitiate the conviction.

Analysis: The material facts were already within the petitioner's knowledge from his own admission before the Income-tax authorities and in the petition filed before the Commissioner. Since the prosecution case rested on a matter already known to him and no actual prejudice was shown, the mere omission to frame a specific question under section 313 did not justify interference with the conviction.

Conclusion: The omission under section 313 did not vitiate the conviction.

Issue (ii): Whether the petitioner knowingly made a false statement in verification attracting section 277 of the Income-tax Act, 1961.

Analysis: The evidence showed that the income from the partnership business was not disclosed in the returns despite the petitioner's awareness of its true character. His later admissions, the dispute among partners, and the conduct after the award supported the conclusion that the false verification was made with knowledge of its falsity. The omission was not a mere inadvertence and the absence of financial advantage did not negative the offence.

Conclusion: The ingredients of section 277 were proved and the conviction was justified.

Issue (iii): Whether the sanction for prosecution under section 279 of the Income-tax Act, 1961 was invalid for want of proper application of mind.

Analysis: The prosecution was launched at the instance of the Commissioner as required by section 279. The sanction order showed consideration of the relevant papers and a conscious decision to prosecute. The statutory scheme under section 279 differs from sanctions under other enactments, and the sanction was not shown to be defective.

Conclusion: The sanction for prosecution was valid.

Issue (iv): Whether the petitioner was entitled to the benefit of section 360 of the Code of Criminal Procedure, 1973.

Analysis: Although the petitioner was a first offender, the case related to tax evasion and a deliberate false return. In such economic offences, the discretionary benefit of section 360 need not be extended where the court considers a strict view appropriate.

Conclusion: The petitioner was not entitled to the benefit of section 360.

Issue (v): Whether the sentences should run concurrently under section 427 of the Code of Criminal Procedure, 1973.

Analysis: As the petitioner faced multiple convictions arising out of separate assessment years, the court directed that the sentence imposed in one revision should run concurrently with the sentences in the other cases under section 427.

Conclusion: Concurrent running of sentence was directed in the specified case.

Final Conclusion: The revisions failed on the merits, and the convictions and substantive sentences were maintained, with only the direction for concurrency of sentence in one case.

Ratio Decidendi: A conviction is not vitiated by an omission under section 313 where the accused had prior knowledge of the incriminating facts and no prejudice is shown; in a prosecution under section 277, deliberate false verification with knowledge of falsity is sufficient for guilt.

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