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December 2020

Offences and prosecution – Wilful attempt to evade tax – Section 276C(2) – Delay in payment of tax – Admission of liability in return and subsequent payment of tax – Criminal proceedings quashed

By K. B. Bhujle
Advocate
Reading Time 1 mins

20. Bejan
Singh Eye Hospital Pvt. Ltd. vs. I.T. Department [2020] 428 ITR 206 (Mad.) Date of order: 12th March, 2020 A.Ys.: 2012-13 to 2015-16

 

Offences and prosecution – Wilful attempt
to evade tax – Section 276C(2) – Delay in payment of tax – Admission of
liability in return and subsequent payment of tax – Criminal proceedings
quashed

 

The assessees filed
their returns of income in time for the A.Ys. 2012-13 to 2015-16 and admitted
their liability. There was delay in remittance of the tax for which they were
prosecuted u/s 276C(2) on the ground of wilful evasion of tax.

 

The Madras High
Court allowed the petition filed by the assessee and held as under:

 

‘The assessees had
since cleared the dues and as on date no tax dues were payable in respect of
the years in question. Inasmuch as the liability had been admitted in the
counter-affidavit and inasmuch as the tax had been subsequently paid,
continuance of the criminal prosecution would only amount to an abuse of legal
process. The criminal proceedings were to be quashed.’

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