S.D.BAJAJ, J. - (1.) A partnership concern working under the name and style of M/s. Basal Tools Company, Factory Area, Patiala, submitted its income-tax return for the assessment year 1968-69, completed on 31st August, 1967, to the concerned Income Tax Authorities on 29th June, 1968. At the relevant time partnership concern had two partners named Shanti Lal Kapur and Subhash Kapur. the return was filed on behalf of the partnership concern by Shri Shanti Lal Kapur. its senior partner in age.
(2.) INCOME disclosed in the return aforesaid, was Rs. 85,760/-. In the assessment order dated 30th October, 1971 the income was raised to Rs. 2,64,680/-. In appeal the income was reduced to Rs. 1,03,512/-. After reopening to the assessment proceedings, the assessee filed revised return through Shri Suresh Kapur its added partner added after the assessment year 1968-69 of the return. On 30th September, 1980 the income was assessed at Rs. 1,99,990/-. Penalty of Rs. 45,593/- imposed on 24th February, 1983 was waived by the Commissioner, Income Tax (Appeals) Chandigarh on 31st July, 1984. Alleging that the partnership concern and its three partners had fabricated false evidence by furnishing inaccurate particulars of the income earned by the partnership concern upto 31st August, 1967 in the return for the assessment year 1968-69 and then supported it with falsely prepared accounts, Shri D.C. Roy, I.T.O. Patiala, filed against the four criminal complaint Annexure P. 4 in the court of learned Chief Judicial Magistrate, Patiala, for their prosecution under sections 276(c) and 277 read with section 278 of the Income-Tax Act and under sections 193, 643 and 477 read with section 109 of the Indian Penal Code.
(3.) ALL the four persons arrayed as accused in the complaint Annexure P. 4 have filed Cr. Misc. No. 4394-M of 1987 for quashing the complaint Annexure P. 4 and all subsequent proceedings thereon on the ground that Subhash Kapoor and Suresh Kapoor have nothing to do therewith and that the partnership concern as also Shanti Lal Kapur if at all can both be proceeded against under Section 277 of the Income Tax Act therein.;