The Assessing Officer held that  but for the survey, the incorrect claims to exemption under sections 54, 54B and 54F would have been allowed unnoticed, that the claims were mala fide with intention to evade tax, that the assessees had concealed income by furnishing inaccurate particulars of income. He levied penalty under section 271(1)(c) which was confirmed by the Commissioner (Appeals). The Tribunal deleted the penalty. Consequent to the order of Commissioner (Appeals) the Assessing Officer launched prosecution under sections 276C and 277 for wilful attempt to evade tax or penalty.  The assessee moved petition before the High court to quash the prosecution proceedings, allowing the petitions the Court held that on the facts there was no suppression of facts and the assessee had originally disclosed the receipt of monies from the sale of property and mere claiming of deduction there was no wilful evasion of tax. The disclosure had been made. Therefore, the fact that merely exemptions from capital gains were claimed under section 54 or section 54B or section 54F on the property and investments had not been made, wilful evasion of tax could not be presumed. The Tribunal had found that there was no suppression of facts. Therefore, initiation of prosecution on similar allegations was nothing but a futile exercise. The criminal prosecution on similar grounds would not serve any purpose but only lead to unnecessary harassment. Accordingly, the criminal proceedings initiated were quashed. (AY. 2010-11)