Smt. Manorma Prasad V. Union of India through the Commissioner of Income Tax, Ranchi and Asstt. Commissioner of Income Tax, Special Investigation Circle-2, Patna

Cr.M.P./9/2004

AI Insights

The case revolves around Smt. Manorma Prasad, who sought to quash criminal proceedings against her for alleged undervaluation of jewellaries and concealment of income sources, which were initially assessed and confirmed by the Income Tax authorities in Ranchi. The proceedings were based on the complaint that the jewellaries were undervalued and sourced from undisclosed incomes. However, the Income Tax Appellate Tribunal in Kolkata later reversed these assessments, leading to the current application to quash the criminal proceedings. The opposing parties, represented by Ms. Amrita Sinha, contested the quashing, but the court found that the reversal of the assessment nullified the basis for the criminal charges.

• Counselvise Citation: [2018] 140 COUNSELVISE.COM (IT) 801641 (HC-JHARKHAND)
• Appeal Type: Others
• Pronouncement Date: 23-04-2018
• Assessment Year: misc
• Laws Referred To: Indian Penal Code
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: AMRITA SINHA
• Assessee Lawyers: ABHISHEK KUMAR
• Keywords: Economic offences; Income tax appellate tribunal; Quashing of criminal proceeding; Undisclosed source of income; Valuation of jewellaries
• Section: 276C; 277

Judgement Text

"IN THE HIGH COURT OF JHARKHAND AT RANCHI Cr.M.P. No. 09 of 2004 Smt. Manorma Prasad .... Petitioner Versus 1. Union of India through the Commissioner of Income Tax, Ranchi 2. Asstt. Commissioner of Income Tax, Special Investigation Circle-2, Patna … Opposite Parties --- CORAM: HON’BLE MR. JUSTICE RONGON MUKHOPADHYAY --- For the Petitioners : Mr. Abhishek Kumar, Advocate For the O.P. 1 & 2 : Ms. Amrita Sinha, Advocate --- Order No. 08 Dated 23rd April, 2018 Heard Mr. Abhishek Kumar, learned counsel appearing for the petitioner and Ms. Amrita Sinha, learned counsel appearing for the opposite parties. In this application the petitioner has prayed for quashing of the entire criminal proceeding including the order dated 29.08.1996 passed by learned Special Judge, Economic Offences, Ranchi in connection with Complaint Case No. 01 of 1996, whereby and whereunder, cognizance has been taken for the offence punishable u/s 276C and 277 of the Indian Penal Code. It has been stated by learned counsel for the petitioner that the order of assessment was affirmed by the Commissioner of Income Tax (Appeals), Ranchi and the petitioner had preferred an appeal before the Income Tax Appellate Tribunal, Kolkata Bench, Kolkata in which orders of assessment were set aside since the valuation of the jewellaries was not properly done. Learned counsel further submits that the subject matter of this case has become a nullity in view of the order passed by the Income Tax Appellate Tribunal, Kolkata Bench, Kolkata and the criminal proceeding deserves to be quashed and set aside. Ms. Amrita Sinha, learned counsel appearing for the opposite parties has opposed the prayer made by the petitioner. It appears from the allegation levelled in the complaint petition that the actual value of the jewellaries was concealed and suppressed and the ornaments of the assesse were found to be from undisclosed source. It has been alleged that for the concealment of the income, a proceeding was also initiated for assessment and the order of assessing authority was affirmed by the 2. Commissioner of Income Tax (Appeals), Ranchi. Based on the aforesaid allegation Complaint Case No. 01 of 1996 was instituted in which cognizance for the offence punishable u/s 276C and 277 of the Indian Penal Code was taken vide order dated 29.08.1996. It appears that the order passed by the Assessing Authority which was affirmed by the Commissioner of Income Tax (Appeals), Ranchi was challenged by the petitioner before the Income Tax Appellate Tribunal, Kolkata Bench, Kolkata in M.A. 22 (P) of 2001 and vide order dated 19.11.2001, the order passed by the Commissioner of Income Tax (Appeals), Ranchi including the order passed by the Assessing Authority was reversed. This order was challenged by the Income Tax Department in M.A. Nos. 49 of 2004 and 50 of 2004 and both the appeals were dismissed. It was noted in the order passed by the Income Tax Appellate Tribunal, Kolkata Bench, Kolkata that the valuation of the jewellaries which was done was not just and proper and in fact the assessee had satisfactory explained the source with supporting documents. Since the subject matter of the complaint petition is with respect to under valuation of jewellaries of the petitioner and obtaining ornaments from undisclosed source of income and since the same having been considered by the appellate tribunal, while setting aside the order passed by the Commissioner of Income Tax (Appeals), Ranchi including the order passed by the Assessing Authority, the allegation therefore has become a nullity in the eye of law. In view of the above, this application is allowed and the entire criminal proceeding including the order dated 29.08.1996 passed by learned Special Judge, Economic Offences, Ranchi in connection with Complaint Case No. 01 of 1996, whereby and whereunder, cognizance has been taken for the offence punishable u/s 276C and 277 of the Indian Penal Code, is hereby quashed and set aside. (RONGON MUKHOPADHYAY, J.) MK "