In the course of search, certain incriminating documents were found and seized. The return of income was filed and the assessment with certain additions were completed u/s 153A and accordingly demand of tax, interest, etc. was raised. The Revenue simultaneously initiated the prosecution u/s 200 and 190(1)(1) of Cr.PC for the offense u/s 276C(2) r.w.s. 153A and also initiated the prosecution for the offences u/s 276CC. The Court found that the entire prosecution initiated is in pursuance to the order of assessment and penalty u/s 143(3) r.w.s. 153A and when the order of assessment itself is set aside, the initiation of prosecution cannot be sustained till the fresh assessment order passed. The complaints quashed. (AY. 2009-10 too 2015-16)
S. Arputharaj v. DCIT (2023) 156 taxmann.com 572 / (2024) 296 Taxman 291 / 461 ITR 450 (Mad)(HC)
S. 276CC: Offence and prosecution-Failure to furnish return of income-Assessment order and penalty order is set aside-The criminal proceedings pending against the assessee were liable to be quashed. [S.132, 139, 153A 271F,,276(2), 27C(1),Code of Criminal Procedure 1973, S 190(1)(1), 200]