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September 2025

Offence and prosecution — Wilful attempt to evade tax — Assessee filed a return, accepted with a refund — French Government information under DTAA alleged assessee held Swiss bank accounts — A search conducted u/s. 132 — No incriminating evidence found — Addition made on account of alleged foreign accounts — Tribunal set it aside — Criminal complaints u/s. 276C, 276D, and 277 for tax evasion and non-compliance with a notice to sign a consent form filed — Information from French, not Swiss, authorities was unauthenticated, and no evidence supported tax evasion — Without credible evidence, sections 276C, 276D, and 277 were inapplicable, and complaints were quashed — Non-signing of consent form was penalized under section 271, not warranting criminal proceedings.

By Keshav Bhujle | Ritu Punjabi, Advocates
Reading Time 4 mins

30. [2025] 176 taxmann.com 771 (Del.):

Anurag Dalmia vs. ITO:

A. Ys. 2006-07 and 2007-08:

Date of order 21/07/2025:

Ss. 276C r.w.s. 5, 271, 276D and 277 of ITA 1961

Offence and prosecution — Wilful attempt to evade tax — Assessee filed a return, accepted with a refund — French Government information under DTAA alleged assessee held Swiss bank accounts — A search conducted u/s. 132 — No incriminating evidence found — Addition made on account of alleged foreign accounts — Tribunal set it aside — Criminal complaints u/s. 276C, 276D, and 277 for tax evasion and non-compliance with a notice to sign a consent form filed — Information from French, not Swiss, authorities was unauthenticated, and no evidence supported tax evasion — Without credible evidence, sections 276C, 276D, and 277 were inapplicable, and complaints were quashed — Non-signing of consent form was penalized under section 271, not warranting criminal proceedings.

The assessee filed Income Tax Returns for 2006-07 and 2007-08, declaring total income, which were finalized with refunds issued u/s. 143(1) of the Income-tax Act, 1961. In 2011, French a

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Assessment — Rejection of books of account — Estimation of net profit at 8% — Disallowance u/s. 43B while computing income and tax liability — Since profit was estimated after rejecting books of account Tribunal could not restore the matter to the Assessing Officer to consider whether addition was required to be made.

Penalty u/s. 270A — Debatable issue — Receipts chargeable to tax as ‘Fees for Technical Service’ u/s. 9(1)(vii) or ‘Fees for included services’ under Article 12 of the DTAA between India and USA — Divergent views taken by the High Courts — Two views possible — Penalty u/s. 270A not leviable.