The assessee claimed exemption u/s. 54F  of the Act. The exemption was disallowed and which was affirmed by the Appellate Tribunal. Penalty was set aside by the Tribunal. Prosecution was launched against the assessee. The petitioner filed application before the High Court to quash the prosecution proceedings, Quashing the proceedings under sections 276C and 277, that the Tribunal had held that the assessee had made a bona fide claim. It was not the case of the Assessing Officer that the claim was false or bogus. When the Appellate Tribunal had factually recorded the finding that there was no suppression of facts and the assessee had originally disclosed the receipt of the sale property, and merely claimed deduction it could not be said that there was wilful evasion of tax. It was also admitted that the tax was paid and penalty proceedings recorded that there was no suppression of fact. The proceedings under sections 276C and 277 were not valid. (AY.2012-13)