Wilful tax evasion allegations must show conscious intent; mere non-payment or delay will not sustain criminal process.

A complaint under section 276C(2) must allege a wilful attempt to evade payment of tax, penalty or interest; mere non-payment or delay is not enough. The complaint must contain material showing a conscious and intentional attempt to evade the quantified liability, supported by facts from which mens rea can be inferred. Where the return was filed, tax was paid, and no averment disclosed a deceptive device, underhand conduct, or other deliberate evasion, the criminal process could not be sustained and was quashed.

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Issues: Whether the complaint disclosed an offence under section 276C(2) of the Income-tax Act, 1961, so as to justify continuation of the criminal process, or whether the process was liable to be quashed for want of allegations showing a wilful attempt to evade payment of tax.

Analysis: Section 276C(2) penalises a wilful attempt in any manner whatsoever to evade the payment of tax, penalty or interest under the Act. The provision contemplates more than mere non-payment or delay; the complaint must contain material showing a conscious and intentional attempt to evade the quantified liability. On the facts stated, the return was filed, tax was paid, and the complaint did not contain any averment of a deceptive device, underhand dealing, or other circumstance from which a wilful attempt to evade payment could be inferred. In the absence of allegations showing mens rea and a deliberate attempt to evade payment of the assessed liability, the criminal process could not be sustained.

Conclusion: The complaint did not disclose the ingredients of section 276C(2), and the process issued in both matters was quashed in favour of the assessee.

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