TaxTMI 
TaxTMI 
1991 (5) TMI 35
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....icer in regard to the concealment of income by the concern in its income-tax return filed for the assessment year 1974-75 for earning wrongful gain to itself by avoiding liability to pay income-tax had been reversed by the appellate authority on January 21, 1980. Feeling aggrieved thereby, the complainant-Income-tax Officer has filed Criminal Appeal No. 428-DBA of 1983 in this court. We have heard Shri A. K. Mittal, advocate, with Mr. G. S. Sandhawalia, advocate, for the appellant, Shri Raj Mohan Singh, advocate, for the respondents and have carefully perused the relevant records. Referring to the observations made in P. Jayappan v. S. K. Perumal, First ITO [1984] 149 ITR 696 (SC) and Sant Parkash v. CIT [1991] 188 ITR 732 (P & H) learned....
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....this Act or under any rule made thereunder, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable, (i) in a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine." "278. Abetment of false return, etc. -If a person abets or induces in any manner another person to ....
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....is quite obvious that a prosecution would not follow in every case where a wrong statement is made and it will have to be judged as to whether the assessee harboured the required mens rea or not. That mens rea is an essential ingredient of an offence under section 277 of the Act is clear from the section itself. Even otherwise, it has been held by this court in Parkash Chand v. ITO [1982] 134 ITR 8 (headnote) : "Prosecution was launched against the assessee for offences under section 277 of the Income-tax Act, 1961, and sections 193 and 471 of the I. P. C. on the basis of false returns, false accounts and inflated items of purchases. Pending the criminal proceedings, in penalty proceedings for concealment of income, the Tribunal examined ....