Order

Leave granted.

In respect of the Assessment Years 1978-79, 1979-80 and 1980-81 re­turns were filed by the respondent, after search and seizure had taken place under Section 132 of the Income-tax Act. Returns were filed belatedly and the assessments which were made were at a figure more than what was the returned income.

2. Prosecution was launched against the respondent alleging that he had committed an offence under Section 276-C of the said Act, since his returns had been filed much after the date of search and he had wilfully attempted to evade tax chargeable or imposable under the Act.

3. The respondent thereafter moved an application under Section 482 before the Allahabad High Court. It was contended before the Court that the assessment which was made was on the basis of a compromise arrived at between the respondent and the Income-tax Commissioner, Kanpur and there was also an understanding that no penal action would be taken against the respondent. A further contention which was raised was that before any prosecution is launched an opportunity of hearing should have been afforded. This contention was sought to be raised on the basis of the respondent’s interpretation of su