SATYANARAIN PRASAD Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioners have filed the present application for quashing the order dated March 18, 1993, passed by the Special Subordinate Judge, Economic Offences, Patna, taking cognizance of the offence under Sections 276C and 277 of the Income-tax Act, in Complaint Case No. 31(C) of 1993.

(2.) OPPOSITE party No. 2, Assistant Commissioner of Income-tax, Arrah, filed a complaint petition before the Special Court, Economic Offences, Patna, stating, inter alia, that the firm of M/s. Satya Narain Pd. Bhola Prasad is a registered firm and derives income from the sale of mustard oil, vegetable oil, sugar and maida, etc. The petitioners are the partners of the said firm and having share in the profit and loss of the business, they are equally responsible for every act and business of the firm. On October 30, 1990, they filed return showing a total income of Rs. 1,04,807 for the assessment year 1990-91. However, the assessing authority, computed the assessment on a total income of Rs. 6,74,722, under Section 143(3)/182(1) of the Act. It transpired during the assessment proceeding that the investments made over the purchase of drafts were concealed by the petitioners and as such a proceeding under Section 271(1)(c) of the Act was initiated against them for concealment of income. Accordingly, the complaint was filed for their prosecution for the aforesaid two offences.