Flamingo Breweries Pvt Ltd And 2 Ors Vs Income Tax Department (Gauhati High Court)
Summary: The Gauhati High Court, by a common judgment and order dated 02.09.2026, allowed three connected criminal petitions arising from complaints under Sections 276D/277 of the Income Tax Act, 1961. The first matter was Crl. Petition No. 896 of 2022 filed by M/s Flamingo Breweries Pvt. Ltd. and its two Directors, while connected petitions concerned Sanju Phangcho and Bijoy Phangcho. The complaints were founded on an assessment order dated 21.12.2018 for AY 2016-17, which had determined taxable income at Rs. 35,66,191/- against returned income of Rs. 8,01,508/-. The assessment had followed alleged non-compliance with notices, discrepancies in the balance sheet and P&L account, and rejection of books. The CIT(A) partly granted relief by directing application of a 2.33% net profit rate instead of 7%, and the ITAT subsequently set aside the appellate order and restored the matter to the Assessing Officer for fresh adjudication after permitting the assessee to submit evidence, account books and details. A subsequent assessment was stated to have determined net profit at Rs. 11,87,032/-, followed by proceedings under Sections 271(1)(c) and 271(1)(b). The judgment records payment of an outstanding demand on 05.04.2023, but the text contains differing figures at different places: Rs.10,00,000/- in paragraph 5.5 and Rs.10,000/- in later submissions and paragraph 25.1.
