Harish Chadha Vs State (Delhi High Court)
Delhi High Court upholds sentence under section 276C(2) of the Income Tax Act for wilful non-payment of income tax since merely claiming financial inability, without providing any further explanation or evidence, holds no weight and is clearly untenable.
Facts- The Income Tax Department filed a Complaint before the learned Metropolitan Magistrate against the Petitioner, Mr. Harish Chadha for defaulting in making payment of Income tax for the Assessment Year (AY) 1995-96.
It was asserted in the Complaint that the Petitioner had filed a Report accompanied by the Profit & Loss Account, Balance Sheet and Annexures on 31.10.1995, but no Returns were filed till 26.03.1999. As per his documents, he has earned a profit of Rs.4,05,81,265/- during the year 1995-96 in his Export business against the sales shown by him as Rs.3,44,92,089/-. He had also shown profit from licensing and interest from the FDRs, but had not filed any Report from the Chartered Accountant in Form No. 10CCA under Rule 18 BBA (3) to claim exemption under Section 80HHC. The Balance Sheet furnished by the Petitioner reflected that he had extended loans and advances of Rs. 6,21,70,763/-.
A Survey u/s. 133A of the Income Tax Act was carried out on 30.10.1995. Finally on 07.03.2001, the concerned Income Tax Officer passed the Assessment Order for the year 1995-96. The Assessee did not file any Income Tax Returns after the Assessment Year 1996-97. He also failed to deposit any tax penalty or interest wilfully, which is an offence u/s. 276C(2) r.w.s. 278(E) of the Income Tax Act. Hence, the Commissioner, Income tax accorded sanction u/s. 279 of the Income Tax Act on 15.03.2004, followed by filing of a Criminal Complaint by the Income Tax Officer.
