Waterways Shipyard Pvt. Ltd. Vs Income Tax Department (Bombay High Court)
The Bombay High Court considered a petition filed by the Petitioners seeking quashing of Private Complaint A.O.A. No. 331/2019 pending before the Court of Chief Judicial Magistrate, Panaji, Goa. The complaint was filed under Section 200 of the Cr.P.C. for an offence punishable under Section 276C(2) read with Section 278B of the Income Tax Act.
For Assessment Year 2013-14, the Petitioners filed income tax returns declaring a self-assessment tax liability of more than Rs.28 lakhs. The Department subsequently determined the Petitioners’ tax liability at Rs.35,08,430/-. The Petitioners sought time to make payment, citing the stoppage of mining activities in Goa and the absence of business activities. A show cause notice was issued in 2016, following which the Petitioners sought permission to pay the amount in three installments between July and September 2016 and also requested waiver of interest and penalty.
In 2017, the Department obtained authorisation to launch prosecution concerning the self-assessment tax of Rs.28,94,550/- together with interest. The Petitioners again requested time for payment. Subsequently, between 23.06.2017 and 19.03.2018, the Petitioners paid the self-assessment tax along with additional amounts through installments, totaling Rs.35,08,430/-. By letter dated 28.03.2018, they again requested waiver of interest and penalty under Section 220(2) of the Income Tax Act.
