| Case ID |
204680e2-d470-4987-9777-6003b1d6bfca |
| Body |
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| Case Number |
CRL. M. No. 218M OF 1986 |
| Decision Date |
Mar 26, 2003 |
| Hearing Date |
|
| Decision |
The court held that the offence of tax evasion under section 276C could still be tried even if the order of assessment was set aside. The ruling emphasized that tax evasion is independent of assessment proceedings, allowing the prosecution to proceed based on the evidence presented. The court dismissed the petition concerning the first three petitioners while allowing the petition regarding petitioners Nos. 4 to 6 due to lack of specific allegations against them. This decision underscores the principle that the prosecution can pursue charges of tax evasion irrespective of the status of the assessment order, reflecting the serious nature of tax offences and the legal framework supporting prosecution. |
| Summary |
In the case of Gheru Lal Bal Chand v. Income Tax Officer, the Punjab and Haryana High Court addressed the critical issue of whether an order of assessment being set aside affects the prosecution for tax evasion under section 276C of the Income-tax Act, 1961. The court found that the allegations of tax evasion are independent of the assessment process and can still be prosecuted. The case arose from allegations that the petitioners maintained duplicate books of accounts to evade taxes, leading to a complaint filed under sections 276C and 277 of the Income-tax Act. The trial court's dismissal of the petitioners' application to quash the proceedings was upheld for the first three petitioners, while proceedings against the last three were quashed due to insufficient allegations. This ruling highlights the importance of maintaining integrity in financial reporting and the legal consequences of tax evasion, reinforcing the judiciary's role in upholding tax laws and ensuring accountability. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Not available
|
| Judges |
ADARSH KUMAR GOEL, J.
|
| Lawyers |
S.P. Gupta,
N.K. Sharma,
N.L. Sharda
|
| Petitioners |
Gheru Lal Bal Chand
|
| Respondents |
Income Tax Officer
|
| Citations |
2003 SLD 3445,
(2003) 264 ITR 355
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
276C,
278B
|