TOTA RAM SHARMA Vs. STATE OF RAJASTHAN

JUDGEMENT

(1.) BY this petition, the petitioner has prayed that proceedings in Crl. Case No. 37/85 be quashed.

(2.) THERE was a search at the premises of petitioner on 20th May, 1983. The Department assessed the income of the petitioner under S. 132(5) of the IT Act (hereinafter, referred as 'the Act') at Rs. 33,500. The petitioner has filed the return declaring his income Rs. 25,430. It was assessed at Rs. 46,360 and finally assessed at Rs. 27,360 on the basis of addition of Rs. 1,930; the penalty proceedings under S. 271(1)(c) of the Act were initiated and penalty of Rs. 8,364 was imposed. That penalty was cancelled by Dy. CIT(A) vide his order dt. 24th March, 1992 holding that mere addition does not attract the penalty automatically. No case of penalty was made out. When two opinions were available for concealment of income, the benefit goes to assessee, therefore, the penalty under S. 271(1)(c) of the Act was cancelled by Dy. CIT(A). Simultaneously, a complaint under S. 256(1)(c) of the Act has been filed by the Department against the petitioner. The criminal proceedings are still pending in the trial Court. By this petition under S. 482 CrPC it is prayed that those proceedings be quashed/dropped.

(3.) THE petition is allowed as indicated above.