Case Law Details
Pralay Pal Vs State of Jharkhand (Jharkhand High Court)
Jharkhand High Court held that once penalty order is set aside, it will be presumed that there is no concealment and hence prosecution under Section 276C(1) of the Income Tax Act will be quashed automatically.
Facts- This petition has been filed for quashing the entire criminal proceedings. Notably, the assessee (petitioner) filed returns of income for A.Y. 2011-12 on 31.07.2011 declaring a total income of Rs.18,83,940/-. The case of the petitioner was selected for scrutiny. The assessment order u/s. 143(3) of the Income Tax Act was passed by the Deputy Commissioner of Income Tax determining the total income at Rs.20,66,090/- only.
The assessee had concealed the income of Rs.1,82,146/- deliberately. The assessee has deliberately provided inaccurate details of his income which leads to concealment of income. Therefore, in this matter penalty proceeding was also initiated u/s. 271(1)(c) and the penalty proceeding was also confirmed by the CIT(A). The assessee is alleged to have attempted to evade the tax liability by furnishing inaccurate particulars of income leads to concealment of income of Rs.1,82,146/-. Thus, the accused made himself liable to be prosecuted u/s. 276C(1). The sanction order u/s. 279(1) for launching prosecution u/s. 276C(1) against the accused for A.Y. 2011-12 has been accorded to by the Principal Commissioner of Income Tax. However, in the aforesaid sanction order, some mistake was apparent which later on was rectified by the Principal Commissioner of Income Tax order passed u/s. 154 of the Act.
Notably, the Income Tax Appellate Tribunal vide order dated 08.12.2016 has set aside the penalty order. The prosecution was initiated u/s. 276C(1) of the Income Tax Act, 1961.
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