Narendar Singh Vs Union of India (Jharkhand High Court)
Jharkhand High Court held that prosecution under section 276(C)(1) of the Income Tax Act liable to be quashed in absence of any penalty provision against the petitioner.
Facts- This petition is made for quashing of the entire criminal proceeding including the cognizance order dated 02.11.2017.
The prosecution has been launched by the Income Tax Department against the Petitioner alleging therein that though the Assessee filed its returns of income for Assessment Year 2011-12, showing an income of Rs. 6,85,110/- and declared total income including interest of Rs. 1,00,752/-, however, did not pay the same while filing the returns, although the declaration was made by the petitioner that the tax liability has been discharged. While the returns were processed u/s. 143(1) of the Act, a demand of Rs. 1,11,730/-, culminated and since no payments had been made, demand was raised, which was deposited on 15.11.2016, pursuant to the letter dated 09.11.2016, issued by AO. Thus, alleging evasion of tax falling within the purview of wilful attempt of evasion to pay taxes u/s. 276C (2).
Conclusion- Admittedly the petitioner has submitted the income tax return pointing out the liability for the year 2011-12, however along with the return the tax liability was not deposited, which was deposited later on. Thus, it is crystal clear that the tax amount has already been deposited, however, after certain delay and that was deposited with interest in light of Section 240(A) of the Income Tax Act.
