In response to notice under section 153C of the Act, the asseessee filed return of income and disclosed the gold ornaments which was found in the course of search. The AO assessed the income and levied the penalty u/s 271(1)(c) of the Act. On appeal the penalty is sustained. The Revenue has launched the prosecution against the assessee.  On writ  dismissing the petition the Court held that the Principal Commissioner had suo motu taken up revision proceedings by an order dated February 23, 2021, on the basis that no reconciliation was carried out. Though the proceedings were challenged by the assessee before the court, it was rejected by the court. That the assessee had already filed a petition for discharge and that was also dismissed by the trial court. Now the reassessment proceedings were pending with the Assessing Officer. Therefore, it could not be said that the proceedings attained finality. Hence, there was no exoneration of the assessee from all the charges. Further, the quantum of jewellery found during the search was not brought out in the earlier returns filed by the assessee. Therefore, the reconciliation of jewellery had not attained finality, in view of the pendency of the proceeding under section 263 of the Income-tax Act, 1961. The adjudication proceedings and the criminal prosecution were independent of each other and the pendency of any adjudication proceeding was not bar to proceeding with the prosecution.(AY. 2012-13)