UNION OF INDIA Vs. BIRDIBAI GARG

JUDGEMENT

(1.) THIS order shall govern the disposal of the aforesaid two appeals filed on behalf of the Union of India respectively against the order dated November 24, 1992, passed by the Additional Chief Judicial Magistrate, Economic Offence, Indore, in Criminal Case No. 57 of 1990 and Criminal Case No. 56 of 1990 whereby the accused-respondent was acquitted of the offence under Section 276C of the Income-tax Act, 1961 (for short "the Act").

(2.) FOR both the aforesaid appeals the facts in brief are that the respondent-assessee filed returns of her income for the assessment years 1985-86 and 1986-87 on March 31, 1987, showing her income respectively Rs. 16,676 and Rs. 19,890 for the aforesaid periods. The assessment was completed on July 21, 1987, and thereafter a notice under Section 148 of the Act was issued to the respondent-assessee, as it was found that the assessee has not disclosed the income received by her by way of rent from the house property of Rs. 40,000. In reply to the aforesaid notice, the assessee filed additional returns for both the assessment years, offering to pay the tax on the income received by way of rent from the house property. The Assessing Officer opined that the assessee has deliberately concealed the income from the house property for the assessment years 1985-86 and 1986-87, with the intention to escape from the payment of tax on the said income. The Assessing Officer, imposed a penalty of Rs. 20,000 and Rs. 15,000, respectively, for the assessment years 1985-86 and 1986-87 under Section 271(1)(c) of the Act and also filed a complaint before the trial court for initiating prosecution against the respondent-assessee for the offence under Section 276C of the Act. It also emerged from the record that the respondent-assessee aggrieved by the order of the Assessing Officer imposing penalty of Rs. 20,000 and Rs. 15,000 filed appeals before the Commissioner of Income-tax which were dismissed. The assessee preferred appeals against the orders of the Commissioner of Income-tax to the Income-tax Appellate Tribunal, Indore Bench, and the Appellate Tribunal by order dated November 21, 1994, allowed the appeals filed on behalf of the respondent-assessee and set aside the orders of the lower Tribunal imposing penalty on the assessee under Section 271(1)(c) of the Act.

(3.) LEARNED counsel for the respondent relying on the decision of this court in the case of Sureshchand Gupta v. Union of India [1998] 233 ITR 783 ; [1998] 1 MPLJ 49 has submitted that the matter in controversy in the aforesaid appeals stands resolved by the aforesaid decision of this court based on the decision of the apex court in the case of G.L. Didwania v. ITO [1997] 224 ITR 687. As such, no grounds are made out for reversal of the impugned judgment acquitting the respondent of the offence under Section 276C of the Act.