2004 (4) TMI 26

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....f the Code of Criminal Procedure for quashing of the complaint dated March 30, 1992 (annexure P3), filed by the Assistant Commissioner of Income-tax (respondent herein) under sections 276C and 277 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the concealment of some amount in his return of income for the assessment year 1981-82. In response to the notice issued under sec....

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.... the Income-tax Appellate Tribunal, which, vide its order dated August 26, 1992 (annexure P2), held that for the assessment year 1981-82, the said penalty could not be upheld and the matter was remanded to the Income-tax Officer to take a fresh decision in accordance with law after hearing the assessee and after calling from him for proof of filing of the original return. Counsel for the petition....

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....enalties and prosecution under section 276C of the Act are simultaneous. Hence, once the penalties are cancelled on the ground that there is no concealment, the quashing of prosecution under section 276C is automatic. The assessee cannot be made to suffer and face the rigours of criminal trial when the same cannot be sustained in the eyes of law because the entire prosecution in view of a conclusi....

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....dent could not dispute the aforesaid factual and legal position and almost conceded that the case of the petitioner is covered by the aforesaid decisions of the hon'ble Supreme Court. However, he submitted that he is not in a position to rebut the contention made by learned counsel for the petitioner that after the remand, no fresh order of penalty has been passed, therefore, a liberty be given to....