Offence u/s 276(C)(2) and 277 - Allegation of willful tax...

Offence u/s 276(C)(2) and 277 - Allegation of willful tax evasion and non-payment of admitted tax - compounding application. The petitioner submitted income tax return indicating tax liability for the year 2011-12, but did not deposit the tax liability initially, which was later deposited with interest u/s 240(A) of the Income Tax Act. No proceedings pending against petitioner regarding tax recovery or penalty. Willful demand of tax payment was the subject matter in Gopal Ji Shaw case, considered by the court. No penalty provision against petitioner, presuming no concealment, hence quashing of prosecution u/s 276(C)(1) automatic. Penalty proceedings and prosecution can proceed simultaneously, but in this case, no penalty proceedings, so petitioner's case allowed under Article 226 of the Constitution based on Pralay Pal case. Entire criminal proceedings, including cognizance order dated 02.11.2017 for offences u/ss 276(C)(2) and 277 against petitioner in the Special Judge's court, quashed.