No penalty or prosecution if return was voluntarily filed in good faith prior to detection of concealment

Section 271(1)(c), read with section 276C, of the Income-tax Act, 1961 and section 245 of the Code of Criminal Procedure, 1973 - Penalty - For concealment of income (Effect of filing return) - Assessment year 1988-89 - Whether return filed by assessee was voluntary and it was filed in good faith before detection of any concealment by Assessing Officer, no penalty could be levied - Held, yes - Whether where penalty itself was deleted, very basis of complaint before Sub-Divisional Judicial Magistrate for prosecution of assessee was knocked down and continuation of complaint would be an abuse of process of court - Held, yes [Para 13] [In favour of assessee]

Refer:[2014] 46 taxmann.com 281 (Punjab & Haryana)

HIGH COURT OF PUNJAB and HARYANA

Raj Bricks Field

v.

Income-tax Officer