RAGHUNATH PRASAD MOHANLAL Vs. UNION OF INDIA

JUDGEMENT

(1.) THIS revision petition has been filed by applicants against judgment dt. 6th April, 1994, passed in Criminal Appeal No. 63/94 by VII ASJ Indore, arising out of order dt. 19th Aug. , 1994, passed in Criminal Case No. 22/86 by Addl. Chief Judicial Magistrate (Economic Offences) Indore, thereby convicting the applicants for the offence punishable under Sections 276c, 277/278b of the IT Act (for short, 'the Act') and sentencing applicant No. 1 with fine of Rs. 200 and applicants No. 2 to 4 RI for 3 months each with fine of Rs. 200 on each count.

(2.) THE case of the prosecution in nutshell before the Court below was that applicant No. 1, through applicant No. 2 , Mohanlal, had submitted a return of income for the asst. yr. 1982-83, on 20th Sept. , 1983, showing taxable income of Rs. 51,000. During search by Sales-tax Department, in the premises of applicants, some loose papers, Udarat Bahi, etc. were found and the same were seized. The entries available in loose papers and Udarat Bahi were not mentioned in the accounts books.

(3.) AS per account books, total sale was shown to be Rs. 2,95,295 and the tax was assessed on the sale amount of Rs. 3,14,500. The assessee had declared total income of Rs. 51,000 which includes Rs. 22,340 as income outside the books. He offered this income for tax. Whereas the Income-tax Officer (for short, 'the ITO') assessed total sale of Rs. 3,80,000 and income of Rs. 1,00,082. The assessee went up in appeal. The CIT (A) reduced it upto Rs. 66,455. On the basis of these facts criminal complaint was filed under Sections 276c, 277/278b of the Act alleging that by filing false statements in the return, they have committed wilful concealment of income and evaded tax.