Petition was filed to quash the proceedings pending before the Additional Chief Metropolitan Magistrate.  Allowing the petition the Court held that it could be seen that there was no act of concealment on the part of the assessee. The gravamen of indictment related to filing of an incorrect return and making wrong verification of the statements filed in support of the return, resulting in initiation of penalty proceedings. On the facts of the caseit was only wrong calculation of the loss sustained in his business, which was not supported by the books of account or other documents. The assessee had paid the penalty as early as on April 23, 2014. Three years thereafter, show-cause notices were issued to the assessee. In these cases, entire payments were made by the assessee and there was no intention to evade payment. The prosecution under sections 276C and 277 was not valid. Referred  Prem Dass v.ITO(1999) 236 ITR 683(SC), wherein the Court held that mere omission and negligence, cannot be construed as offence.  (AY.  2007-08, 2008-09)