Allowing the petition the to quash the Criminal proceedings for wilful attempt to evade tax the Court held that ,if the assessee’s appeal against levy of penalty u/s 271(1)(c) for concealment of income is allowed by the Appellate Tribunal and has become final, the quashing of prosecution is automatic. The High Court can exercise its inherent jurisdiction to quash the prosecution and not indulge in the empty formality of directing the assessee to approach the Trial Magistrate . Accordingly the prosecution proceedings against the firm and partners are quashed .Followed K. C. Builder v.ACIT (2004) 265 ITR 562 (SC) ) ( CRMP No. 2075 of 2018, dt. 26.06.2019)
System India Casting v. PCIT ( 2019) 310 CTR 26/ 180 DTR 317 (Chhattisgarh)(HC),www.itatonline.org
S. 276C : Offences and prosecutions – Wilful attempt to evade tax-Concealment penalty is deleted –Quashing of prosecution is automatic- The High Court can exercise its inherent jurisdiction to quash the prosecution and not indulge in the empty formality of directing the assessee to approach the Trial Magistrate .[ S.271(1)( c ),, 277 278 , Art , 226 , 227 ]