TaxTMI 
TaxTMI 
2022 (6) TMI 898
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.... the petitioners. During the course of search and seizure it was found that the assessee in W.P.No.112881 of 2019 along with family members had approximately 83 acres of land at Anchatgeri, Karwar Road, Hubli and the assessees had entered into joint development agreements with one Sri Milan Madhusudan Parikh, proprietor of M/s Golden Home Trading Corporation to develop the property owned by them. Owning of the property is independent to each of the assessees in these cases. The plots that they own and the contents of joint development agreements are different as is pleaded. Pursuant to search and seizure it was found that the assessees family had not shown any income from this project notwithstanding the fact that they had shown income as receipts. During the post search investigation Sri Milan Madhusudan Parikh with whom joint development agreements had been entered into did show his income as Rs.1,64,96,584/- from the receipts of the same project called Golden Hillock Project. 4. On an allegation that the fact of earning income was within the knowledge and the income generating activity was carried out by Smt. Fatima Nasiruddin Bagwan, assessee in Writ Petition No.112882 of 2019....
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....ection 277 67, section 277A or section 278 except with the previous sanction of the Principal Commissioner or Commissioner or Commissioner (Appeals) or the appropriate authority: Provided that the Principal Chief Commissioner or Chief Commissioner or, as the case may be, Director General may issue such instructions or directions to the aforesaid income- tax authorities as he may deem fit for institution of proceedings under this sub-section. Explanation.-For the purposes of this section, "appropriate authority" shall have the same meaning as in clause (c) of section 269UA. (1A) A person shall not be proceeded against for an offence under section 276C or section 277 in relation to the assessment for an assessment year in respect of which the penalty imposed or imposable on him under section 270A or clause (iii) of sub-section (1) of section 271 has been reduced or waived by an order under section 273A. (2) Any offence under this Chapter may, either before or after the institution of proceedings, be compounded by the Principal Chief Commissioner or Chief Commissioner or a Principal Director General or Director General. (3) Where any proceeding has been taken against any per....
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.... Trading Corporation to develop the previously mentioned 83 acres of land into 830 residential plots. The JDA was commenced in the year 2006 between the parties to share the number of flats in the ratio of 50:50 i.e., 415 plots each party. The JDA was approved in the year 2009. Total number of sites in the said project is 830, out of which 415 sites belong to the assessee and her family members. The arrangement was such that the sales would be carried out by Milan M. Parikh and the sale proceeds received would be shared in to 50:50 ratios between Milan M. Parikh and assessee and her family members. In the first phase, total 400 sites were sold at the rate of Rs.84 square feet and in the second phase remaining 350 sited were sold at the rate of Rs 100 per square feet. Rs.19.5 Crore have been realized from this project. 3. Hence, the share of assessee and her family stands at Rs.9,75,00,000/-. It was found out that Shri Milan M. Parikh had shown Rs. 5,09,98,675/- for the F.Y. 2012-13, Rs.29,78,712/- for the F.Y 2013-14 and Rs.2,14,174/- for the F.Y 2014-15 as receipts from this project in his returns of income. However, the members of assessee's family have not shown any income fro....
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....all not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to two years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of fringe benefits under sub-section (1) of section 115WD or return of income under sub-section (1) of section 139- (i) for any assessment year commencing prior to the 1st day of April, 1975; or (ii) for any assessment year commencing on or after the 1st day of April, 1975, if- (a) the return is furnished by him before the expiry of the assessment year; or (b) the tax payable by him on the total income determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source, does not exceed three thousand rupees." 6. In view of the above stated facts and discussions, assessee was given an opportunity to explain as to why the prosecution proceedings under section 276CC of Income Tax Act, 1961, should not be initiated against her for her willful failure to furnish the return of income for the A....
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....fute the position that notices are issued while according sanction for prosecution in respect of offences punishable under Section 276CC. The learned counsel would, however, accept that one more opportunity could be given to the petitioners to compound the offence in the light of no further proceedings have happened as interim order is operating in the case at hand throughout the pendency of these proceedings. 7. In the light of what is quoted in the order of sanction (supra) I deem it appropriate to accept the submission of the learned counsel appearing for the petitioners more so on two grounds -(i) since the offence alleged is compoundable and an opportunity ought to have been granted by the respondents/ department and (ii) though an opportunity is granted, the learned counsel for the petitioner submits, at that point in time the petitioner in Writ Petition No.112881 of 2019 was hospitalised and others were taking care of him. Therefore, in my considered view on launching of criminal prosecution against the petitioners if one more opportunity is granted and compounding is permitted no prejudice would be caused to the Department. The other ground is that the interim order stayin....