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| The Tax Publishers2020 TaxPub(DT) 3249 (Mad-HC) : (2020) 274 TAXMAN 0495 INCOME TAX ACT, 1961
Section 276C(2)
Where the sales of account of the assessee were seized and after search the assessee voluntarily disclosed income and paid taxes thereon then no offence under section 276C(2) was under out.
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Prosecution - Offence under section 276C(2) - Wilful attempt to evade tax - Filing return of income belatedly after the expiry of the time limit prescribed under section 139(1)
A search has been conducted under section 132 of Income Tax Act on 18-12-2012 and during the search, it was noticed that the accused did not file his return of income for the assessment year 2013-2014 as required under section 139(1) of the income Act. He ought to have filed return of income on or before 5-8-2013. But he belatedly filed his return of income for the assessment year 2013-2014 only on 31-1-2014 admitting his entire income. The last date for filing the returns for the financial year 2012-13 was on or before 5-8-2013. The revenue did not hand over the book of accounts seized from the petitioner on till 5-8-2013. Therefore, there was delay in payment of income tax and the petitioner filed return of income on 31-1-2014. From the reading of the section 276C(2) to punish the accused, there must be wilful attempt to evade payment of tax, he must be in possession of the book with false entries, the person should have made false entries in the book of accounts and omitting any entry in the statement of accounts. The petitioner voluntarily disclosed the undisclosed income to the respondent on the inspection conducted under section 132 of the Income tax Act, 1961. Therefore, there was no intention from the petitioner for willful evading of payment of tax. Admittedly, the respondent on the inspection dated 18-12-2012, had seized the relevant book of accounts and as such the petitioner could not able to file the return of income on or before 5-8-2013. Therefore, the petitioner had no wilful intention to evade tax as alleged by the respondent. That apart, the petitioner had paid the entire tax amount on 13-3-2018 and the respondent had also acknowledged the same by the acknowledgment dated 14-3-2018. Therefore, the offence under section 276C(2) of the Income Tax Act was not at all attracted as against the petitioner herein, and the entire criminal proceedings pending against the petitioner is nothing but clear abuse of process of law. As such it cannot be sustained as against the petitioner and it is liable to be quashed.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2013-14
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