SHEO SHANKAR SAH Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) HEARD the learned counsels for the parties. The petitioner is an income-tax assessee and is being prosecuted for offences punishable under ss. 276C and 276CC of the IT Act, 1961 ('the Act') vide complaint case No. 383 of 1992 pending before the Special Court of Economic Offences at Muzaffarpur. The petitioner seeks quashing of his criminal prosecution on the ground that it was wholly arbitrary and without application of mind and in violation of the principles of equity and natural justice.

(2.) IT appears that the Asstt. CIT (O. P. No. 3) filed a complaint petition (Annexure-1) alleging that for the asst. yr. 1988-89 assessment had been completed under S. 144 of the IT Act, 1961 ('the Act') on account of non-compliance of notices issued under ss. 148 and 142(1), etc., and the AO had estimated the total turnover of Rs. 50 lakhs and the net income thereon at Rs. 8 lakhs. After including some income from some other sources, the total income was computed at Rs. 8,15,000. It was, therefore, alleged that the accused-petitioner had committed an offence, as he had failed to file return of income in respect of notice served on him and for failure to take reasonable care to discharge the statutory obligation cast on him under S. 139(1) of the Act. It is also alleged that the petitioner had consciously concealed the particulars of income in order to evade tax chargeable or imposable under the Act. The complaint was filed after obtaining sanction of the CIT(O.P. No. 1). The petitioner has also sought quashing of the order dt. 30th April, 1992 (Annexure-3) passed by the learned Presiding Officer taking cognizance of the offences.

(3.) IN the result, this application is allowed and the criminal prosecution of the petitioner including the impugned order taking cognizance is set aside.