Late return filed within Section 139(4) time and accepted, leading to interim stay of Section 276CC prosecution.

Further criminal proceedings under Section 276CC of the Income-tax Act were viewed as vulnerable where the return had been filed within the time permitted under Section 139(4), was accepted by the department, and no penalty for late filing had been imposed under Section 271(1)(a). On those facts, the complaint was treated as disclosing a prima facie abuse of the process of law, and interim protection was considered justified pending further examination. Interim stay of the criminal proceedings was granted.

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Issues: Whether further proceedings under Section 276CC of the Income-tax Act, 1961 should be stayed in view of the filing and acceptance of the return within the statutory time permitted under Section 139(4) and the absence of penalty for late filing.

Analysis: The return for the relevant assessment year was filed before the extended time available under Section 139(4) of the Income-tax Act, 1961 and was accepted by the department. The order also notes that no penalty for late filing was imposed under Section 271(1)(a) of the Income-tax Act, 1961. On these facts, the complaint was found to disclose a prima facie abuse of the process of law, warranting interim protection pending further consideration.

Conclusion: Interim stay of the criminal proceedings was granted in favour of the applicant.

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