Karnataka HC Quashes Prosecution of Assessee for Tax Fraud Committed by CA

Kubendra Davalaji Kalal Vs Income Tax Department (Karnataka High Court) Karnataka HC: Criminal Proceedings u/s 276C & 277 Cannot Be Sustained Against Assessee Where CA Fraudulently Manipulated Tax Payment Challan The Karnataka High Court (Dharwad Bench) has quashed criminal proceedings initiated against a 79-year-old assessee for alleged offences u/s 276C(2) & 277 of the Income-tax Act, holding that an assessee cannot be prosecuted for fraudulent acts of his Chartered Accountant & staff when he had already discharged his tax liability in full. The petitioner had filed return of inc...