Swastika Metal Works and Others vs Vimal Vashist, Inspecting Assistant Commissioner of Income Tax

S.D. Bajaj, J.—Vide order dated March 8/13, 1985, Annexure P-1, to Criminal Miscellaneous No. 1392-M of 1988, the Inspecting Assistant Commissioner of Income Tax (Assessment), Karnal, held that credit entries amounting to Rs. 85,000 in the books of account of Swastika Metal Works, petitioner No. 1, of which petitioners Nos. 2 to 10 are partners, for the assessment year 1982-83 were not genuine and, therefore, treated this amount as income of the assessee for that year. On the basis of this finding, a criminal complaint, annexure P-2, was also filed against the assessee under Sections 276C and 277 of the Income Tax Act, 1961, in the court of learned Chief Judicial Magistrate, Karnal.

The said finding of the learned Inspecting Assistant Commissioner of Income Tax (Assessment), Karnal, has been set aside on appeal by the Income Tax Appellate Tribunal, Chandigarh Bench, vide order dated January 4, 1988, annexure P-3.

Basis of the complaint having been knocked out, the allegations in the complaint are rendered groundless. In line with the finding recorded by this court in D.N. Bhasin and Another Vs. Union of India (UOI) and Others, Criminal Miscellaneous No. 1392-M of 1988 succeeds and is allowed. Complaint, annexure P-2, is quashed. It is, however, made clear that in case the orders of the Commissioner of Income Tax (Appeals) are set aside and that order achieves finality, the Revenue will be entitled to file fresh complaints against the petitioners on the same facts and grounds in accordance with law and this judgment will not stand in their way to that extent. No costs.