2026 (7) TMI 971

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....emand for payment of tax of Rs. 4,38,576/- (Rupees Four Lakhs Thirty Eight Thousand Five Hundred and Seventy Six only) was raised on the petitioners on 09.02.2017, to be paid within thirty days; that it was not paid within the stipulated time; that the said amount was paid only on 11.07.2018; and that, there was a wilful default in payment of tax attracting the offence under Section 276(C)(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"). 3. The undisputed facts leading to the filing of the complaint are as follows: (a) The petitioner, in his original return of income, declared a total income of Rs. 10,74,300/- and paid tax accordingly. Notice under Section 143(2) of the Act was issued on 23.06.2016, and an ....

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....hemselves have conceded that the original assessment order dated 30.12.2016 was erroneous. A modified order under Section 154 of the Act was passed on 09.02.2017. Though culpable mental state can be presumed under Section 278E of the Act, this Court and the other High Courts have consistently taken a view that where wilfulness cannot be inferred from the conduct of the assessee, prosecution under Section 276(C)(2) of the Act would be an abuse of process of law. 7. On similar facts, this Court in S.P.Velayutham vs. Asstt. CIT reported in [2022] 135 taxmann. Com 43 (Madras) had held that in order to prosecute a person under 276(C)(2) of the Act, which has to be strictly construed, the circumstances and the conduct of the accused must be su....

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....ent of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. Explanation.- For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person- (i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) conta....