INCOME TAX OFFICER Vs. SHIV KUMAR

JUDGEMENT

(1.) THIS is a criminal appeal filed by the IT Department against the judgment of the Court of Sessions Judge, Sirsa, whereby the appeal filed by Shiv Kumar, the respondent, against the judgment of the Chief Judicial Magistrate, Sirsa, dt. 12th had been acquitted. Aggrieved by the judgment of acquittal of Shiv Kumar, the present appeal has been filed by the ITO, Sirsa.

(2.) SHIV Kumar, the respondent, along with others, had been prosecuted by the IT Department, i.e., ITO, A -Ward, Sirsa, on the allegations that M/s Shiv Kumar Ramesh Kumar - -a partnership firm, through its partners, had filed the return for the asst. yr. 1979 -80. That return duly signed and verified by its managing partner, Shiv Kumar, showed the income of Rs. 68,100 but during the course of assessment it was found that there were two refunds of the market fee amounting to Rs. 1,28,001.45 and of Rs. 83,195.66. Rupees 1,28,001.45 had been duly accounted for in its P&L a/c. However, instead of crediting in the P&L a/c, Rs. 83,195.66 was directly taken to the capital accounts of the partners and, therefore, this refund of Rs. 83,195.66 which was to be shown as income, had been concealed.

(3.) WHILE making the assessment order, this amount was added in the income. Penalty was also imposed. Further prosecution was launched for offence under ss. 276C and 277 of the IT Act against the firm and its partners. The Chief Judicial Magistrate, Sirsa, found that the return was signed and verified by Shiv Kumar. The case was found to be proved against him. He was accordingly convicted whereas other partners, namely, Tarsem Chand, Shanti Devi and Sita Devi were acquitted.