INCOME-TAX OFFICER Vs. PREM DASS

JUDGEMENT

(1.) ON August 1, 1980, the respondent, Prem Dass, proprietor of Messrs. Rajdhani Express Goods Transport Company, NIT Faridabad, filed before the Income-tax Officer, Faridabad, an income-tax return dated July 31, 1980, for the year 1979-80 declaring an income of Rs. 25,219 out of which Rs. 20,000 were given out in the return as estimated income from transport business. The assessment was finalised on February 25, 1981. On October 22, 1982, the Income-tax Department conducted a raid on his business premises and collected books of account showing an income of Rs. 5,23,758 made up on the basis of freight income minus expenditure entered therein for the period covered by the return. Finding that the books of account had been withheld from the Department, the return had been filed on the basis of estimated income and that the verification in the income-tax return had been incorrectly made, the Income-tax Officer, A-Ward, Faridabad, filed against the assessee on March 30, 1983, before the learned Chief Judicial Magistrate, Faridabad, a criminal complaint under Sections 276c and 277 of the Income-tax Act, 1961, as amended up to date.

(2.) VIDE its impugned judgment dated September 22, 1986, the learned trial court convicted the assessee of the commission of both the offences aforesaid. For his conviction under Section 276c of the Income-tax Act, 1961, the accused was sentenced to undergo rigorous imprisonment for six months and fined Rs. 1,000. In default of payment of fine, the accused was ordered to undergo rigorous imprisonment for a further period of three months. Identically, the same sentence was awarded to the assessee accused for his conviction under Section 277 of the Income-tax Act as well. Substantive sentences of imprisonment awarded to him on both these counts were, however, ordered to run concurrently. On appeal, vide its impugned judgment dated October 7, 1988, the learned lower appellate court gave to the assessee accused the benefit of doubt and acquitted him. The Income-tax Officer, A-Ward, Faridabad, has filed Criminal Appeal No. 99-DBA of 1989 against the acquittal judgment aforesaid in this court.

(3.) WE have heard Shri R. P. Sawhney, advocate, for the appellant and Shri Harsh Aggarwal, advocate, for the respondent-assessee and have gone through the entire relevant material on record very carefully.