Dinar Tarcar Resources (India) Pvt. Ltd. v. ACIT : Prosecution for tax evasion is unsustainable if delay in payment was due to a business ban and lacks guilty intent.

28. Dinar Tarcar Resources (India) Pvt. Ltd. v. ACIT

2026 (8) TMI 57 (Bom.)

A. Y. 2012-13: Date of order 28th July 2026

S. 276C of ITA 1961

Prosecution u/s. 276C — Wilful attempt to evade tax — Delay in payment of taxes by the assessee — Delay on account of closure of business due to ban on the activity of mining in the State of Goa — Nil income of the assessee — Outstanding demand paid along with interest and penalty — Submissions of the assessee rejected — Prosecution initiated — Complaint filed against the assessee before the Judicial Magistrate — Mere delay or failure to pay, without mens rea, does not satisfy the penal provision — Specific wilful act or circumstance demonstrating an attempt to evade payment not pointed out — Criminal complaint and the process issued against the petitioners were unsustainable.

The Assessee filed its return of income for A. Y. 2012-13 declaring total income at Rs. 4,76,61,800. The income returned by the assessee was accepted vide order dated 15th March 2016. Subsequently, a letter was addressed to the assessee demanding the payment of declared tax. In response, the assessee filed a letter stating that the assessee was pr