AJAY TENT HOUSE Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE present petition under Section 482 Cr.P.C. has been filed by the petitioners for quashing of the complaint dated December 12, 1989 filed under Sections 276-C(1), 277 read with Section 278B of the Income Tax Act and Section 193 of the Indian Penal Code. The complaint has been appended as Annexure P-1 with the petition.

(2.) A perusal of the complaint shows that the petitioners had filed a return for the assessment year 1986-87 declaring the income of Rs. 17,080/- on October 6, 1986. The aforesaid return was signed and verified by Raj Kumar- petitioner No. 3, who was a partner of the firm M/s. Ajay Tent House- petitioner No. 1. The return was accompanied by trading account, profit and loss account, partners accounts and balance sheet etc. The original assessment was completed on October 28, 1986 under Section 143(1) of the Income Tact Act at a total income of Rs. 17,080/-. As per the averments made in the complaint, subsequently, proceedings under Section 143(2)(b) were initiated and as a result thereof a detailed questionnaire was issued to the assessee on September 1, 1987. In response thereto a detailed reply was filed by Baldev Krishan-petitioner No. 2. The allegation in the complaint is that during the course of assessment proceedings it was found that proper accounts were neither maintained nor produced and there were other discrepancies as well. Thus it was taken that Rs. 43,000/- was the income of the assessee from un-disclosed sources. The assessment was finalised at a total income of Rs. 89,850/-. Consequently, penalty proceedings for the alleged concealment under Section 271(1)(c) of the Income Tax Act were also initiated and Rs. 23,750/- were levied as penalty vide order dated January 25, 1989. Accordingly, the complaint in question was filed against the petitioners.

(3.) AT this stage, it may be relevant to notice certain observations made by the Income Tax Appellate Tribunal in the aforesaid order Annexure P-2 :-