PCIT Vs Prabodh Kumar Tiwari (Delhi High Court)
Delhi High Court dismissed the Revenue’s appeal & upheld the acquittal of the assessee in a prosecution launched u/s 276CC of the Income-tax Act, 1961, for alleged willful failure to furnish returns in response to a notice issued u/s 153A.
A search u/s 132 was conducted, following which notice u/s 153A was issued to the assessee to file returns for certain assessment years. Assessee did not file returns within the stipulated time.AO initiated penalty proceedings u/s 271(1)(b) for non-compliance with notices u/s 142(1).
Penalty was deleted by CIT(A), who observed that Assessee had requested copies of seized material to prepare the returns, appeared before the AO on multiple occasions & that the delay was due to exceptional circumstances, including a CBI investigation & arrests of close family members.
Prosecution was also launched u/s 276CC forwilful failure to furnish return of income. Trial Court convicted Assessee. However, Appellate Court set aside the conviction, primarily on the ground that since penalty u/s 271(1)(b) was deleted, prosecution u/s 276CC could not survive.
Revenue’s argued that Penalty proceedings & prosecution are distinct. Deletion of penalty does not bar criminal proceedings & Assessee failed to file returns despite clear statutory obligation under s.153A. Section 278E presumes culpable mental state, & the assessee had not rebutted it.
