False return and forged TDS claim sustained conviction under the Income-tax Act after presumption of culpable mental state.

Conviction under Section 277 of the Income-tax Act was sustained where the return contained a false TDS certificate and an unsupported housing-loan deduction claim used to seek an unlawful refund. The enquiry found that the claimed loan account did not exist and the document relied on was forged. Section 278E operated to presume culpable mental state, and the accused failed to rebut that presumption or give a satisfactory explanation. With concurrent findings of guilt by the trial and appellate courts, no ground for revisional interference was made out, and the conviction and sentence were upheld.

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Issues: Whether the conviction and sentence under Section 277 of the Income-tax Act, 1961 for filing a false return and claiming an unlawful refund were liable to be interfered with in revision.

Analysis: The material on record showed that the return filed for the relevant assessment year contained a false TDS certificate and an unsupported claim of housing-loan deduction and refund. The enquiry revealed that the claimed housing loan account did not exist and the document relied upon by the petitioner was forged. In view of Section 278E of the Income-tax Act, 1961, culpable mental state was presumed, and the petitioner failed to rebut that presumption or furnish a satisfactory explanation. The trial court and appellate court had returned concurrent findings of guilt on the basis of evidence.

Conclusion: The conviction and sentence under Section 277 of the Income-tax Act, 1961 were upheld and no ground for revisional interference was made out.

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