2026 (6) TMI 560

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....2. The respondent filed complaint for the offence under Section 276 CC of the Income Tax Act, 1961 for non filing of income tax returns for the assessment year 2013-2014 on the allegation that the first accused is the company, which engaged in the business of renting of cars to various companies for transportation of their employees, officers, etc on contract basis and also individual basis. The second petitioner is the Director of the first accused company. During the assessment year 2013-2014, they failed to file income tax returns despite huge transactions during the financial year 2012-2013. As per Section 139(1) of Income Tax Act, 1961 (hereinafter called as 'the Act'), they ought to have filed returns of income on or before 30.09.2013....

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....earned Senior Panel Counsel for Income Tax Department appearing for the respondent submitted that the proviso to Section 276 CC of the Act is not applicable to the accused, since it is a company and it is being the company, the proviso (ii) sub clause b of Section 276 CC is not applicable. It is applicable only to the individual person and that too for regular assessment. In the case on hand, the respondent scrutinised the accounts and assessed tax. Therefore, the proviso to Section 276 CC is not applicable to the petitioners. She further submitted that on verification of database of income tax department, it was found that the accused had made contract receipts to the tune of Rs. 2,65,03,859/-, rent received to the tune of Rs. 36,89,255/- ....

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.... Section 276 CC of the Act. Further the first accused is the company. It is relevant to extract the provision under Section 276C of the Act hereunder: 276CC. Failure to furnish returns of income. - If a person wilfully fails to furnish in due time the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under sub-section (2) of section 139 or section 148, he shall be punishable, (i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds one hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any oth....