Case Law Details
Anurag Bagaria Vs Income Tax Department (Karnataka High Court)
Karnataka High Court held that incorrect claim or erroneous claim would not amount to willful evasion. Further, mere fact of not accurate tax, not exact tax or erroneous tax would not lead to the proceedings under Section 276 of the Income Tax Act.
Facts- At the relevant point in time, the petitioner while filing his returns u/s. 139 of the Act, claimed certain deductions under Chapter VI-A and in particular, deductions under the heads of Long Term Capital Gain/Short Term Capital Loss. Long after the said deductions, sometime around September, 2015 the Income-Tax Department conducts search u/s. 132 of the Act and later registers a crime on 30-07-2016 which becomes a crime in C.C.No.221 of 2016 for offence punishable u/s. 276C(1) of the Act. Petitioners in other petitions also belong to the family members of this petitioner. All of them alleged of the same act of willful evasion of tax and are charged of offence u/s. 276C(1) of the Act.
Conclusion- Apex Court in the case of Commissioner of Income Tax, Ahmedabad v. Reliance Petroproducts Private Limited has held that mens rea is an element that is to be present in a proceeding under Section 271 of the Act. The mere fact of not accurate tax, not exact tax or erroneous tax would not lead to the proceedings under Section 276 of the Act.
Held that incorrect claim or erroneous claim would not amount to willful evasion. Erroneous claim in certain circumstances can be erroneous interpretation of law.
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