Case Law Details
S. J. Surya Vs DCIT (Madras High Court)
Facts- Petitioner/accused is a cine actor and Director deriving income from remuneration for acting in movies and also directing movies. He ought to have filed his return of income for the assessment year 2002-2003 on or before 3 1.07.2002. However, he did not filed his return of income within the due date prescribed by the statute and thus contravened the provisions of Section 139 (1). It is an offence punishable under Section 276 CC. He ought to have paid the advance tax within the prescribed dates of 15.09.2001, 15.12.2002 and 15.03.2002 and filed the relevant return for the assessment year 2002-2003 on or before 3 1.07.2002. Petitioner did not pay advance tax and failed to file return of income within the statutory due date. Thus, committed the offence under Section 276 CC by concealing true the correct income by not filing the return of income and committed an offence under Section 276C(1).
The survey operations under Section 133 A were conducted on 04.09.2003 and a search was conducted on 26.10.2005. It revealed unaccounted receipt of money by the petitioner towards remuneration for directing movies. A statutory notice under Section 148 of Income Tax Act, 1961 dated 30.03.2004 was issued to the petitioner to prepare a true and correct return of total income including the undisclosed income assessable for the assessment year 2002-2003 within 30 days from the date of service of the notice. Notice was acknowledged on 05.04.2004. Petitioner ought to have filed the return of income on on or before 05.05.2004, which he failed. Through a letter dated 03.05.2005, he requested time to file return till 15.06.2004. But he did not file the return of income even after 15.06.2004. Therefore, a show cause notice dated 22.07.2004 was issued.
Petitioner filed the return of income for assessment year 2002-2003 only on 15.09.2004. He admitted a total income of Rs.40,00,000/-. However, Assessment was completed under Section 143 (3) on 30.03.2005 assessing his total income at Rs.1,68,38,410/-. Apart from these, a sum of Rs.30,00,000/- was added as unexplained deposit in his bank account in Dena Bank, T. Nagar Branch. Gross tax and interest demand worked out to Rs.85,82,780/-. After giving credit to payments made of Rs.13,00,000/-, net demand was raised at Rs.72,82,780/-. Penalty proceedings under Section 271 (1) (C) were initiated Since, the petitioner has not paid the amount as per demand notice under Section 156 served along with the assessment order under Section 143(3), notice under Section 226 (5) dated 12.08.2005 was issued to M/s.Prasad Film Lab and M/s.Gemini Colour Lab to realize the garnishee amounts. Agricultural lands and the flats belonging petitioner were placed under provisional attachment under Section 281 B of the Income Tax Act. Original assessment was confirmed in appeal on 31.03.2014. Even, thereafter, petitioner has not paid the arrears.
After further process, Assessment under Section 153 A r/w. Section 144 was completed on 24.09.2008 on a total income of Rs.2,00,56,592/-. Based on the materials seized a sum of Rs. 1,70,56,592/-representing the money received for the remuneration of the film ”Nani” and another sum of Rs.30,00,000/- for the remuneration towards the film ”New” were added. Total gross demand was determined at Rs. 1,50,02,522/-. After giving credit to self assessment tax paid at Rs. 10,00,000/-, net demand payable was determined at Rs. 1,50,02,522/-. Penalty proceedings for concealment of income were initiated under Section 271(1)(c) simultaneously. Appeal was dismissed by a common order dated 31.03.2014 and the assessment was confirmed.
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