BASAL TOOLS CO Vs. INCOME-TAX OFFICER

JUDGEMENT

(1.) A partnership concern working under the name and style of Basal Tools Company, Factory Area, Patiala, submitted its income-tax return for the assessment year 1968-69, completed on 31st August, 1967, to the concerned income-tax authorities on June 29, 1968. At the relevant time, the partnership concern had two partners, named, Shanti Lal Kapur and Subhash Kapur. The return was filed on behalf of the partnership concern by Shri Shanti Lal Kapur, its senior partner in age.

(2.) THE income disclosed in the aforesaid return was Rs. 85,760. In the assessment order dated October 30, 1971, the income was raised to Rs. 2,64,680. In appeal, the income was reduced to Rs. 1,03,512. After reopening of the assessment proceedings, the assessee filed a revised return through Shri Suresh Kapur--its added partner ; added after the assessment year 1968-69 of the return. On September 30, 1980, the income was assessed at Rs. 1,99,990. Penalty of Rs. 45,593 imposed on February 24, 1983, was waived by the Commissioner of Income-tax (Appeals), Chandigarh, on July 31, 1984.

(3.) ALLEGING that the partnership concern and its three partners had fabricated false evidence by furnishing inaccurate particulars of the income earned by the partnership concern up to August 31, 1967, in the return for the assessment year 1968-69 and then supported it with falsely prepared accounts, Shri D. C. Roy, Income-tax Officer, Patiala, filed against them four criminal complaints, annexure P. 4, in the court of the learned Chief Judicial Magistrate, Patiala, for their prosecution under Sections 276c and 277 read with Section 278 of the Income-tax Act and under Sections 193, 463 and 477 read with Section 109 of the Indian Penal Code.