2002 (12) TMI 65

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....JM (Economic Offences), Indore, respectively, in Criminal Case No. 95 of 1988 and Criminal Case No. 60 of 1990, whereby the learned magistrate acquitted the accused-respondents of the offences punishable under section 276DD read with section 278B of the Income-tax Act. In both the cases the accused-respondents, in the relevant year of assessment, received cash deposits from the persons in contravention of section 269SS of the Income-tax Act. A prosecution was instituted against the respondents after issuing a show cause notice on the respective respondents. In Criminal Appeal No. 619 of 1993, the complaint was registered against the respondents on August 3, 1988, whereas in Criminal Appeal No. 622 of 1993, the complaint against the respo....

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....g into force of the aforesaid Act. As such, the prosecution for the alleged offences cannot be instituted or continued, on coming into force of the aforesaid Amendment Act of 1987. It is not in dispute that by the Amending Act of 1987 with effect from April 1, 1989, section 276DD was deleted from the Income-tax Act of 1961, and a new provision by way of section 271D has been inserted, which provides for imposition of penalty for the violation of section 269SS of the Income-tax Act. As such, after coming into force of the Amendment Act, the prosecution of the accused respondents under the repealed provision is not possible. In Kolhapur Canesugar Works Ltd.'s case AIR 2000 SC 811, it is held by the apex court that: "The position is well kn....