2021 (8) TMI 1277 - HC - Income Tax

Offences u/s 276CC and 276C (2) - petitioner company had filed self assessment tax - petitioner company had filed self assessment tax on 29.11.2014 for the financial year 2013-14 relevant to the assessment year 2014-15 which is defective for non payment of self assessment tax u/s 140A before furnishing the return of income which constitutes an offence u/s 276 CC and 276 C(2) - contention of the learned counsel for the petitioners is that the petitioners have paid the entire dues to the Income Tax department along with interest - HELD THAT - It is not in dispute that the petitioners had paid the entire amount with interest to the Income Tax department, which is confirmed by the Deputy Commissioner of the Income Tax, Corporate Circle2(2), Chennai-34. The offences alleged are only technical offences and there is no material to show that there was any deliberate and conscious evasion of tax on the part of the petitioners. In view of the same, this Court is of the view that the proceedings are liable to be quashed and accordingly, quashed. Resultantly, this Criminal Original Petition is allowed. Consequently, connected miscellaneous petitions are also closed.

Summary

Issues:
Accused facing prosecution under sections 276CC and 276C(2) of the Income Tax Act for defective self-assessment tax filing.

Analysis:
The petitioners were accused in a case for filing defective self-assessment tax returns under sections 276CC and 276C(2) of the Income Tax Act. The petitioners argued that they had paid the entire dues along with interest to the Income Tax department. The payment details were provided, and it was acknowledged by the Deputy Commissioner of Income Tax. The petitioners contended that despite the payment, the prosecution was continuing unnecessarily. They also cited a Supreme Court case stating that a positive act of tax evasion must be proven for the charges under section 276C(2). The defense maintained that there was no evidence of deliberate tax evasion by the petitioners.

The Special Public Prosecutor opposed the petition, highlighting that the final payment was made after the filing of the complaint. However, the court observed that the petitioners had indeed paid the entire amount with interest to the Income Tax department, as confirmed by the Deputy Commissioner. The court noted that the alleged offenses were technical in nature, and there was no evidence of deliberate tax evasion by the petitioners. Therefore, the court concluded that the proceedings were to be quashed, and the Criminal Original Petition was allowed. As a result, the connected miscellaneous petitions were also closed.