Mere failure to pay tax in time cannot be treated willful attempt to evade tax to prosecute an assessee

Valecha Investments Pvt. Ltd Vs ITO (Bombay High Court)

 HC held that mere default in payment of tax, unless such default arises out of circumstances which has the effect of assessee defeating payment, the expression ‘willful attempt’ cannot be imported to mean failure to pay tax. It is also held in paragraph 10 that mere default in payment of tax “in time”, the willful attempt to evade tax cannot be imported to prosecute an assessee.

FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT

1. Arguable questions are raised, hence, Rule.

2. The complaint against the petitioners is in substance alleges that the assessee/accused had failed to pay self-assessment tax. It is also averred that in spite of the liability being admitted by the assessee, he has not made payment of tax.

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