1980 (7) TMI 26

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....plaint against the petitioner and his co-partners, Deep Chand, Ishwar Singh and Prahlad Singh on 28th March, 1974, in the Court of the Chief Judicial Magistrate, Sonepat, under s. 277 of the I.T. Act, 1961, and under ss. 192, 193, 467, 468 and 471 read with s. 34 of the IPC pertaining to the assessment year 1970-71. The petitioner was charged for the offences under s. 227 of the I.T. Act, 1961, and ss. 193 and 471 of the IPC, by the learned Additional Chief Judicial Magistrate, but his three co-partners were discharged by him. The case against the petitioner is pending before the Additional Chief Judicial Magistrate. It is in this situation that the present petition for quashing the proceedings pending in the criminal court against the peti....

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.... established clearly that particular items of purchases were inflated and as such there was no proof that the assessee had concealed income or furnished inaccurate particulars of income to the extent of Rs.13,912. The operative part of the Tribunal's order is reproduced below: " Now coming to the merits of the penalty, we find that in the impugned assessment order, the Income-tax Officer states at page 2 that purchases to the extent of Rs. 1,12,911.80 shown by the assessee in the accounts, were not susceptible or verifiable. Thereafter, he points out that it was confessed by Shri P. C. Sharma, one of the partners, that some of the documents in the form of letter-heads, etc., by which the purchases were shown as having been made were fabr....

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....e particular items of purchases which were inflated and that there is no proof that the assessee (petitioner) had concealed income or furnished inaccurate particulars of income to the extent of Rs. 13,912. The IAC held as under: " His arguments regarding non-disclosure of wages and interest paid to partners are found to be correct and to that extent it is held that no concealment had been made by the assessee." In Uttam Chand v. ITO (Special Leave Petition No. 1194 of 1978) [since reported in [1982] 133 ITR 909] the Supreme Court observed as under (p. 910): " In view of the finding recorded, by the Income-tax Appellate Tribunal that it was clear on the appraisal of the entire material on the record that Shrimati Janak Rani was a pa....