2002 (10) TMI 19

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....the petitioners pad filed a return for the assessment year 1986-87 declaring the income of Rs. 17,080 on October 6, 1986. The aforesaid return was signed and verified by Raj Kumar, petitioner No.3, who was a partner of the firm, Ajay Tent House-petitioner No. 1. The return was accompanied by trading account, profit and loss account, partners accounts and balance-sheet, etc. The original assessment was completed on October 28, 1986, under section 143(1) of the Income-tax Act at a total income of Rs. 17,080. As per the averments made in the complaint, subsequently, proceedings under section 143(2)(b) were initiated and as a result thereof a detailed questionnaire was issued to the assessee on September 1, 1987. In response thereto a detailed ....

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.... that the assessees made an attempt to evade the tax, penalty or interest chargeable or imposable under the Act and have thus rendered themselves liable to punishment under section 276C(1) of the Income-tax Act. The assessees also made a statement under the verification in the return and delivered the accounts/statements which were false which they either knew or believed to be false or did not believe to be true and they have thus rendered themselves liable to punishment under section 277 of the Income-tax Act read with section 278B of the Income-tax Act and section 193 of the Indian Penal Code, for intentionally filing false income-tax return. 9. That the Commissioner of Income-tax, Haryana, Rohtak, has duly authorised and sanctioned t....

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.... have heard Shri Ajay Mittal, learned counsel for the petitioners, and Sh. R.P. Sawhney, learned senior advocate appearing with Sh. N.G. Sharma, advocate. Shri Ajay Mittal, learned counsel for the petitioner, has relied upon a judgment of the Supreme Court in G.L. Didwania v. ITO [1997] 224 ITR 687. On the basis of the aforesaid judgment of the apex court, Shri Mittal has submitted that since the order of imposing of penalty itself has been quashed by the Tribunal and positive finding has been recorded by it that there was no concealment by the assessees, therefore, the question of continuing with the criminal proceedings could not arise. Shri Mittal has submitted that the learned Judicial Magistrate, First Class, should have accepted th....