2008 (3) TMI 109

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on filed under section 482 of the Code of Criminal Procedure, 1973, for quashment of the prosecution of the present petitioners under sections 276C read with section 278B of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in Criminal Case No. 14 of 1996 pending in the court of Chief Judicial Magistrate, Ratlam. 2. According to the prosecution case, the present petitioner No. 1 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e apex court reported in the matter of K. C. Builders v. Asst. CIT [2004] 265 ITR 562 (SC); [2006] 186 CTR 721, prosecution cannot be sustained when the penalty has already been set aside by the Income-tax Appellate Tribunal. 4. This ground was agitated before the trial court and the revisional court as well unsuccessfully and both the courts below have negatived the contention on the ground....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....cumstances of the case did not justify the levy of penalty. The prevailing circumstances have been completely ignored by the Assessing Officer when admittedly the assessee had deducted the TDS of Rs. 34,552 from the amount of interest credited to the account of the party, even though late, but it has already suffered interest under section 201(1A) of the Act. The penalty has been levied in disrega....