INCOME TAX OFFICER Vs. USHA GUPTA

JUDGEMENT

(1.) A complaint under Sections 276C and 277 of the Income-tax Act, 1961 (hereinafter called "the Act") was filed by the Income-tax Officer, Ward No. 1, Muktsar, against the respondent, Dr. Usha Gupta, proprietor Bansal Nursing Home, Muktsar, on the ground that the respondent had not shown Rs. 1 lakh in the income-tax return filed by her on August 29, 1988.

(2.) THE respondent was summoned in those proceedings. During the pendency of those proceedings, the respondent filed an application for dropping the criminal proceedings against her. THE petitioner pleaded in the application that she is being prosecuted for an offence, that she had paid Rs. 1 lakh to Uniscan and Sonics Ltd., Chandigarh, and this amount has not been shown by the respondent in her account books. In the application, it was further pleaded that the respondent filed a revised return in which she had shown the amount, even though the respondent claimed that she came to know that Uniscans and Sonics Ltd., Chandigarh, had wrongly credited this amount, the revised return was filed to avoid the legal complications.

(3.) THE respondent challenged the order of the Income-tax Officer as well as of the Commissioner of Income-tax (Appeals) imposing penalty before the Income-tax Tribunal. THE appeal of the respondent was accepted by the Income-tax Tribunal vide order dated June 6, 1994. THE Tribunal while accepting the appeal observed that the respondent has not concealed income and imposition of penalty was set aside. On this ground, it was prayed that the proceedings may be dropped. THE petitioner was given notice of the application. THE petitioner filed a reply to the application.