Vyalikaval House Building Co Operative Society Ltd. Vs Income Tax Department (Karnataka High Court)
The Karnataka High Court considered petitions filed by a co-operative society, its Secretary and its Ex-Vice President seeking quashing of criminal proceedings initiated under Section 276C(2) of the Income Tax Act, 1961.
The premises of the society were subjected to search and seizure under Section 132 of the Act on 5 July 2011. Subsequently, the Assessing Officer issued notice under Section 153A dated 27 September 2011 requiring the society to file returns for assessment years 2006-07 to 2011-12. Since there was no compliance, a show cause notice dated 31 July 2013 was issued proposing prosecution under Section 276CC.
In response, the society filed returns on 8 August 2013 for assessment years 2010-11 and 2011-12. It declared total income of Rs.3,49,93,300/- and tax payable of Rs.10,54,420/- for assessment year 2010-11, and total income of Rs.3,78,36,508/- and tax payable of Rs.1,03,88,310/- for assessment year 2011-12.
Although the returns were filed, the society did not pay the self-assessment tax under Section 140A along with the returns.
Meanwhile, the society’s property was attached under Section 281B. The attachment was subsequently lifted on the condition that the sale proceeds of the property would be directly remitted to the Department.
