SHYAM KUMAR ARORA Vs. GOVERNMENT OF INDIA

JUDGEMENT

(1.) THE prayer in this petition under Section 482 of the Code of Criminal Procedure is for quashing of order dated February 6, 1992, passed by the Special Court (Economic Offences), Muzaffarpur, whereby cognizance for the offence under Sections 276C and 277 of the Income-tax Act, 1961, was taken against the petitioners in Complaint Case No. 3 of 1992. THE petitioners also pray for quashing their criminal prosecution in the proceedings arising from the said complaint.

(2.) THE allegation against the petitioners in the complaint are that for the assessment year 1988-89, the petitioners filed the income-tax return showing a net loss of Rs. 38,743. THE Income-tax Officer assessed the annual income of the petitioners for the said period at Rs. 1,19,820. THE Assistant Commissioner of Income-tax, Circle 2(1), Patna, filed the alleged criminal complaint against the petitioners in the Special Court (Economic Offences), Muzaffarpur, for the aforesaid offence on the ground that the petitioners wilfully attempted to avoid tax by concealing true particulars and filed inaccurate particulars of their income. Acting on the complaint, the special court took cognizance of the offence as indicated earlier.

(3.) IN the result, the petition is allowed and the impugned order taking cognizance as also the criminal prosecution of the petitioners resting thereon are hereby set aside. It would be open to the Department to file a fresh complaint against the petitioners in case after fresh assessment the petitioners are found to have committed any offence while filing their return for the assessment year in question.