Case Law Details
DCIT Vs Saloni Jewellers Pvt. Ltd. (Add. Chief Metropolitan Magistrate (Mumbai)
The case of ITO vs Saloni Jewellers Pvt. Ltd. revolves around the failure to file income tax returns in due time, an offence under Section 276CC of the Income Tax Act. The directors of the company were sentenced to six months of rigorous imprisonment due to the late filing of their income returns for AY 2014-2015.
Analysis
In this case, the directors of Saloni Jewellers Pvt. Ltd., the accused, claimed that financial difficulties and reduced profits led to the delay in filing their income returns. However, their explanation was not satisfactory to the Commissioner, leading to a complaint filed with the competent magistrate court.
The crux of the case revolved around the company’s audit report, indicating a profit of Rs.10,00,00,000/- and turnover of Rs.1,19,00,00,000/-. The accused did not deny the figures mentioned in the audit report, which was discovered at their business premises. Even though the company had the resources to file their income return, they did not adhere to the stipulated timeline.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
