By K. B. Bhujle
Advocate
24 Inland Builders Pvt. Ltd vs. Dy. CIT [2022] 443 ITR 270 (Mad) A.Y.: 2014-15 Date of order: 25th August, 2021 Ss. 276C(2) and 276CC of ITA, 1961
Offences and prosecution — Condition precedent for prosecution — Wilful attempt to evade tax — Prosecution for failure to file the return of income — Payment of tax with interest by assessee acknowledged by Deputy Commissioner — No willful evasion of tax — Prosecution quashedA complaint was filed against the assessee under section 276CC and 276C(2) of the Income-tax Act, 1961 on 5th October, 2017 on the ground that the assessee’s return for the A.Y. 2014-15 was defective for non-payment of self-assessment tax under section 140A before furnishing the return of income. The assessee submitted that the entire dues were paid with interest and furnished the details of payments. The final payment was made on 19th March, 2018.
The assessee filed a criminal writ petition for quashing the criminal proceedings and pointed out the entire tax dues have been paid with interest. The Madras High court allowed the petition and held as under:
“The offences alleged were only technical offences and there was no material to show that there was any deliberate and conscious evasion of tax on the part of the assessee. It had paid the entire amount of tax with interest and this was confirmed by the Deputy Commissioner. Therefore, the criminal proceedings were quashed.”
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