Wilful tax evasion through suppression of true stock in books sustained; revisional interference refused

A deliberate failure to reflect the true stock position in the books, coupled with evidence that the accused was responsible for the firm's business affairs and accounts, was treated as a wilful attempt to evade tax under section 276C of the Income-tax Act, 1961. The HC found that the discrepancy between physical and book stock, along with the accused's signed response to the show-cause notice and admitted connection with the business, supported the concurrent findings of guilt. As no jurisdictional or legal error was shown, revisional interference was refused and the conviction and sentence were sustained.

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Issues: Whether the conviction of the petitioner under section 276C of the Income-tax Act, 1961 for wilful attempt to evade tax, penalty or interest was sustainable, and whether the revisional court should interfere with the concurrent findings.

Analysis: The evidence showed a significant discrepancy between the physical stock and the stock recorded in the books. The petitioner had signed the reply to the show-cause notice on behalf of the firm and did not dispute his responsibility for the business affairs or maintenance of accounts. The concurrent findings recorded that the petitioner was actively connected with the business and had failed to show the true stock position, thereby operating capital outside the books and attempting to evade tax lawfully payable. No jurisdictional or legal error was found in the conviction or sentence so as to justify interference in revision.

Conclusion: The conviction under section 276C was upheld and the revision petition was dismissed.

Final Conclusion: Concurrent findings of guilt for wilful evasion were sustained, and no revisional interference was warranted.

Ratio Decidendi: Where the accused is shown to be responsible for the business and accounts of a firm, a deliberate failure to reflect true stock position in the books, resulting in concealment of taxable capital, constitutes a wilful attempt to evade tax punishable under section 276C of the Income-tax Act, 1961.

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