Case Law Details
Muthulakshmi Spinning Mils Pvt Ltd. Vs Income Tax Department (Madras High Court)
The case of Muthulakshmi Spinning Mils Pvt Ltd. vs. Income Tax Department, adjudicated by the Madras High Court, revolves around a criminal complaint filed by the Income Tax Department against the petitioner for non-filing of Income Tax returns and delayed payment of deducted taxes. This article delves into the court’s judgment and the implications of its decision.
The petitioners sought to quash the proceedings in C.C.No.20 of 2017, arguing that the complaint under Section 200 Cr.P.C and Section 276B r/w 278B of the Income Tax Act was unjust. They contended that they had applied for compounding the offense under Section 276B but faced delays in the process.
However, the respondent, representing the Income Tax Department, countered that the petitioners failed to comply with the order to pay compounding fees, resulting in rejection of their application. The High Court noted that the petitioners’ failure to adhere to the prescribed timeline for payment led to the rejection of their compounding application.
The court emphasized that seeking similar relief without challenging the rejection order was not acceptable. Consequently, the petition was dismissed, granting liberty to the petitioners to present their case before the trial court.
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