ANIT ENTERPRISES Vs. STATE OF BIHAR

JUDGEMENT

(1.) This petition is for quashing the criminal proceedings initiated against this petitioner in Complaint Case No. 277 of 1992 pending before Mr. S. M. Ram Spl. Judge (Economic Offences) Ranchi initiated by D. P. No. 2 under Section 276-C/277 of the Income Tax Act.

(2.) Allegation as is relevant from the complaint petition is that the petitioner have to evade tax within returns for assessment year 1988-89 by showing credited amount of Rs. 1,30,000 in the name of one Ram Awtar Agarwal HUF and also claimed deducation of interest of Rs. 12,870 from the income when the same was found to be ingenuine on scrutiny as Ram Awtar himself filed returns on Amenity (sic) Scheme during the past assessment years. On rejection of the claim of the petitioner, an appeal was preferred before Commissioner of Income Tax (Appeal) which was dismissed. On further appeal before the Income Tax Appellate Tribunal, Patna, relief was allowed in favour of the petitioners by judgment and order dated 11-3-1994. In the meantime C. P. proceedings were continuing.

(3.) It is the contention of the petitioners that when the Appellate Authority has allowed the claim of the petitioners and accepted their returns as genuine, then they are exonerated from charge of evading tax as contemplated under the penal provisions of Sections 276-C/277 of the I. T. Act and hence in that view of the matter criminal liability has become non est and as such, the criminal proceedings should be quashed.