Wilful failure to file income-tax return in time is a trial issue; later filing does not by itself quash prosecution

A prosecution for wilful failure to furnish an income-tax return in time was not quashed merely because the return was filed after notice under section 148(1). The alleged delay and its wilfulness were treated as factual questions, including the accused's mental state, which had to be examined at trial and not in section 482 CrPC proceedings. Orders relating to penalty or interest did not bar the criminal prosecution. The complaint was therefore maintainable, and the accused was left to raise factual and legal defences before the trial court.

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Issues: Whether the criminal prosecution for failure to furnish the return of income in due time was liable to be quashed on the ground that the return was filed after notice under section 148(1) of the Income-tax Act, 1961, and whether the alleged delay and its wilfulness could be examined in proceedings under section 482 of the Code of Criminal Procedure, 1973.

Analysis: The complaint was based on the allegation that the accused wilfully failed to furnish the return within the time required under section 139(1) of the Income-tax Act, 1961, and not merely on non-compliance with the notice under section 148(1). The Court held that the fact that the return was ultimately filed after a long delay did not by itself negate the prosecution. Whether the delay existed, and whether it was wilful, involved factual inquiry and the question of the accused's mental state, which was for the trial court to determine. The Court also held that the outcome of penalty and interest proceedings did not affect the criminal prosecution.

Conclusion: The prosecution was held to be maintainable and the request to quash the criminal proceedings was rejected.

Final Conclusion: The accused was required to face trial, with liberty to raise all factual and legal defences before the trial court at the appropriate stage.

Ratio Decidendi: In a prosecution for wilful failure to furnish a return of income in time, the existence and wilfulness of delay are questions for trial, and favourable penalty or interest orders do not bar the criminal prosecution.

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