1996 (8) TMI 80

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....quashing the order of cognizance dated January 4, 1993, and also the entire prosecution relating to Complaint Case No. 3 of 1993 pending in the court of Shri B. K. Sinha, Special Court for Economic Offences, Dhanbad. The facts, in short, for the purpose of this application are that the petitioners are the partners of a firm known as Shah Mohammad, at Sahibganj, and the firm was an assessee unde....

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....bmitted a false income account and, thus, prosecution report was also submitted under sections 276C and 277 of the Income-tax Act, 1961, and then this complaint was filed and on that basis the court below took cognizance of the offence. It was contended on behalf of the petitioners that the entire allegation of the complainant is not maintainable in the eye of law and under a wrong interpretati....

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....e authority and if the basis of the case is now no more available due to subsequent developments, then the prosecution of the petitioners is a misuse of the process of the court and the complaint case will not proceed. In support of this contention, learned counsel for the petitioner has relied upon a case law of our own High Court reported in Banwarilal Satyanarain v. State of Bihar [1989] 179 IT....

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....ication and the court below will consider this aspect and will pass orders according to law. In support of his contention, he has relied upon a case law of the Kerala High Court in P. K. Narayanan v. CIT [1996] 219 ITR 33. So from a perusal of annexures "1" and "2" it can be said that the entire allegation of the complainant regarding concealment of income and imposition of penalty is now no mo....