Case Law Details
R.Revathy Vs ACIT (Madras High Court)
Introduction: The Madras High Court, in the case of R. Revathy vs ACIT, addressed the issue of whether the pendency of income tax adjudication proceedings is a bar to initiating prosecution. The petitioner sought to quash a complaint under Sections 276C(1) & 277 of the Income Tax Act, relating to the assessment year 2012-2013. This analysis delves into the judgment, considering legal principles and implications.
Background: The petitioner, an income tax assessee, faced a complaint for alleged offenses under the Income Tax Act. A search operation in 2011 revealed gold ornaments and jewelry at the petitioner’s residence. Subsequently, the petitioner was issued a notice under Section 153C for the assessment years 2006-07 to 2011-12. The petitioner’s return for the assessment year 2012-13 was filed, admitting a total income of Rs. 24,09,170/-. The assessment proceedings led to a revised memo, with the petitioner admitting an investment of Rs. 48,39,044/- in gold, and an order was passed determining the total income at Rs. 72,75,218/-. Penalty proceedings were initiated, challenged, and eventually set aside by the court, leading to the current prosecution.
Legal Analysis:
1. Reconciliation of Quantum of Jewellery: The petitioner argued that the entire penalty was deleted by the court due to a reconciliation of the quantum of jewelry. The petitioner contended that the prosecution, based on the original penalty order, should not be sustained after the court’s decision. However, the court noted that the proceedings for reconciliation of the quantum of jewelry were still pending, as the Assessing Officer had re-opened the proceedings, and the petitioner’s challenge in this regard was rejected.
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