Appeal dismissed: petitioner denied ITC for electricity used in township maintenance as residential supply; Explanation 1(d) prospective under s.2(17)...
Registration under section 12AA granted where substantive charitable objects for ex-servicemen, incidental commercial activity permitted and profits a...
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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