1999 (7) TMI 32

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....nomic Offences, Muzaffarpur. 3. It is contended by learned counsel appearing on behalf of the petitioners that though the AO made two additions in the assessment order and though the same was the basis for the prosecution against the petitioners, the same has not wholly been sustained by the CIT(A) and also by the Tribunal rather it has been held by the appellate authority and also by the Tribunal that the concealment made by the petitioners was not wilful in nature. Learned counsel, therefore, submitted that in the absence of a finding that there had been wilful evasion of tax on the part of the petitioners and any penalty was imposed by the authorities for the aforesaid evasion, the prosecution launched against the petitioner will be a....

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....inding has been recorded by the authorities showing that it was a case of wilful evasion of tax on the part of the petitioners or the petitioners had mens rea to conceal their income. There is also nothing on record to show that any penalty was imposed upon the petitioners for the alleged wilful evasion of tax. Learned counsel for the petitioners ultimately submitted that in the absence of any finding of the appellate authority and also of the Tribunal that there was wilful evasion of tax and there was mens rea in concealing the income, the prosecution launched against the petitioners is wholly unwarranted. In support of his proposition, learned counsel has relied upon the case of Prem Kumar Keshri vs. State of Bihar (1998) 147 CTR (Pat) 13....

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....of account or other documents" or (iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or (iv) causes any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof." 5. The facts which have been narrated above do not bring out a case at least under any of the clauses mentioned above and in the absence of facts containing the ingredients of the offences in my view, no offence under ss. 276C and 277 of the Act is made out. I have already noticed above that the appellate authorities as also the Tribunal have not recorded a finding that there was wi....