SATYA NARAIN DALMIA Vs. STATE OF BIHAR

JUDGEMENT

(1.) THE petitioner seeks quashing of his prosecution under ss. 276C and 277 of the IT Act, 1961 ('the Act') as also the order taking cognizance. The said proceeding is pending being the Special Court (Economic Offiences), Muzaffarpur vide complaint Case No. 443 of 1991.

(2.) THE ITO filed a complaint against seven persons including the petitioner alleging commission of the aforesaid offences for the asst. yr. 1980-81. Kashi Ram Dalmia is a URF firm and accused Nos. 2 to 7 including the petitioner are said to be the partners of the said firm. The firm had filed a return of income on 20th Oct., 1983 showing an income of Rs. 1 lakh for the assessment year in question. Subsequently on the basis of search operation a fresh assessment was done and the assessment was made on total income of Rs. 1,42,600 after adding undisclosed income of Rs. 62,000. On appeal, the CIT(A) vide his order dt. 14th July, 1987 reduced the income after affirming the addition of Rs. 50,000 only. Thus, a relief to the extent of Rs. 12,000 was granted. A penalty proceeding under S. 271(1)(c) of the Act had also been initiated.

(3.) THUS , for the foregoing reasons, the prosecution of the petitioner or for that matter of the firm and other partner of the firm is an abuse of the process of the Court and the quashing of the criminal prosecution of the petitioner and other similarly situated persons as also the impugned order taking cognizance against them is necessary to secure the ends of justice and I order accordingly.