Criminal case quashed as delayed payment of tax was not a willful attempt to evade tax

Sujata Electrical lnfratech Private Limited Vs DCIT (Telangana High Court)

Telangana High Court quashed the Criminal Petition as delayed payment of tax was on account of cogent reasons i.e. financial difficulty and was not on account of any willful attempt to evade tax.

Facts- The petitioner filed original return of income tax in A.Y. 2014-15 on 29.11.2014 declaring a total income of 1,03,44,060/-. After claiming a tax credit for TDS of Rs.53,016/, out of the admitted tax liability, as per the return of income, the accused filed return of Rs.38,00,170/-. However, the tax was not paid.

It is the case of the respondent that the accused has willfully defaulted in payment of self assessment tax of admitted income as required u/s. 140A of the Income Tax Act, 1961 attracting the provisions u/s. 276C(2) of the Act, which penalizes such default.

The Income Tax Department issued a show-cause notice dated 06.2016 which was served on the petitioners/accused. The petitioners replied in writing on 23.06.2016 informing that there was no willful default or malafide intention to evade tax payment, but the same was on account of certain financial difficulties beyond control. Along with reply, a letter along with a copy of self assessment tax challan for Rs.50,55,310/- along with interest was paid and requested the department not to initiate any proceedings.

Please become a Premium member. If you are already a Premium member, login here to access the full content.