ONKAR CHAND & CO. Vs. INCOME TAX DEPARTMENT

JUDGEMENT

(1.) BOTH the petitions titled above preferred under s. 482 of the Cr.PC r/w Art. 227 of the Constitution of India involve the common questions of law, therefore, taken together for its disposal. The respondent has filed two complaints - -one bearing No. 196 -III/2005 against petitioners M/s Onkar Chand and its partners; and another Complaint No. 195 - III/2005 against its sister concern M/s Shankar Dass Bal Ram Kumar and its partners under ss. 276C(1), 277 and 278B of the IT Act, 1961, (in short 'the Act') allegedly for concealing the particulars of income to evade tax, wilfully and intentionally, which otherwise was payable under the Act.

(2.) FINDING reasonable grounds to summon the petitioners, the learned trial Court (Addl. Chief Judicial Magistrate) issued the process against the petitioner firms and to all its partners, which have been assailed in these petitions.

(3.) ADMITTEDLY , the petitioner firms, in both the petitions are business firms dealing in foodgrains and Karyana goods in Village Jhalera, Tehsil and District Una, H.P. was converted into search and seizure under s. 132 of the Act. Both the firms in both the petitions had offered an 1992, declaring their income to the tune of Rs. 1,29,390. The return of the income was duly signed and verified by Mr. authority after completing the assessment under s. 143 of the Act at Rs. 23,68,060 enhanced the amount after rectification to Rs. 25,79,710 and with regard to the addition of Rs. 2,10,382 the Tribunal remanded back the matter to the assessing authority, who computed the income at Rs. 14,20,120 and penalty of Rs. 12,57,360 was imposed which was reduced in appeal to Rs. 7,26,814. tune of Rs. 2,22,020. The return of the income was duly signed and verified by Mr. Yash Pal s/o late Shri Shanker Dass, under s. 143 of the Act on Rs. 31,63,438, which amount was reduced in appeal to Rs. 25,37,120 and in further appeal, it was reduced to the tune of Rs. 18,66,158 by the Tribunal and returned the matter to the assessing authority, who imposed penalty of Rs. 8,62,524 under s. 271(1)(c) of the Act.