Appeal allows marketing payments as deductible business expenses under Sec.37; director pay retained; R&D deductible from certificate date under Sec.3...
Registration under s.12AB upheld; CIT(Exemptions) exceeded jurisdiction by deciding taxability instead of preliminary verification and registration di...
HC allowed the criminal petition and quashed continuation of prosecution under Section 276C(2) of the Income Tax Act against the petitioners. The Court held that the essential ingredient of a "wilful attempt" to evade tax, involving false entries, omissions or other circumstances enabling evasion, was absent; the case involved mere default in payment. The assessee paid the entire tax liability after issuance of a show-cause notice, demonstrating absence of mens rea. Noting that Section 220 makes a default but does not import "wilful" conduct and that statutory remedies exist for delayed payment, the HC found continued criminal proceedings would be an abuse of process and infringe the petitioners' rights.
HC allowed the criminal petition and quashed continuation of prosecution under Section 276C(2) of the Income Tax Act against the petitioners. The Court held that the essential ingredient of a "wilful attempt" to evade tax, involving false entries, omissions or other circumstances enabling evasion, was absent; the case involved mere default in payment. The assessee paid the entire tax liability after issuance of a show-cause notice, demonstrating absence of mens rea. Noting that Section 220 makes a default but does not import "wilful" conduct and that statutory remedies exist for delayed payment, the HC found continued criminal proceedings would be an abuse of process and infringe the petitioners' rights.
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