Wilful tax evasion not proved where liability was later discharged and no positive evidence showed deliberate withholding of payment.

Wilful evasion under section 276C(2) read with section 278B of the Income-tax Act was not established because the tax liability for the relevant assessment year was ultimately discharged through payments and adjustments, and the record did not show that the assessee had the financial capacity to pay earlier but deliberately withheld payment. In the absence of positive evidence of intentional delay or evasion, the trial court's view on the facts was held to be a possible view and not perverse, so leave to appeal against acquittal was refused.

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Issues: Whether the complaint for offence under section 276C(2) read with section 278B of the Income-tax Act, 1961 was liable to proceed on the footing that the assessee had wilfully evaded payment of tax, and whether leave to appeal against the acquittal was warranted.

Analysis: The evidence showed that the tax liability for the relevant assessment year was ultimately discharged through a series of payments and adjustments, and the material on record did not establish that the assessee had the financial capacity to pay earlier and yet deliberately withheld payment. In the absence of positive evidence proving wilful delay or evasion, the view taken by the trial court on the facts was a possible view and could not be branded perverse.

Conclusion: The allegation of wilful evasion was not made out, and no ground existed to grant leave to appeal.

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