2022 (9) TMI 1487 - HC - Income Tax

Proceedings u/s 276CC - not filing the returns for the accounting year 2013-14 - petitioner contends as before launching the criminal prosecution, the respondent ought to have conducted enquiry based on the material available and ought to have heard the Assessee - HELD THAT - This Court on perusing the records, finds that the petitioner, who is an income tax Assessee and had taxable income, ought to have submitted his returns for the income in the year 2013-14 soon after completion of the financial year on or before 30th September 2013, as per Section 139(1) of the Income Tax Act. Admittedly, in his reply notice, the petitioner had sought time to file his returns by 30th September, 2016. Even after 30th September 2016, he has not filed his return. Therefore, provision under Section 276CC of Income Tax Act squarely attracts for prosecuting the petitioner. Only after waiting till 30th September, 2016, the prosecution has been launched in the month of December, 2016. This Court finds no legal error or infirmity in the complaint, which is taken on file by the learned Additional CMM II - Accordingly, this Criminal Original Petition for quash is dismissed.

Summary

Issues:
1. Quashing of complaint lodged by Income Tax Department under Section 276CC of the Income Tax Act for not filing returns for the accounting year 2013-14.

Analysis:
The petitioner argued that the complaint should be quashed as it was premature since the time for filing the return had not expired when the show cause notice was issued. It was contended that the prosecution was launched without conducting an enquiry based on available material and without hearing the Assessee, solely based on presumption of willful tax evasion.

The Income Tax Department contended that the petitioner, an income tax Assessee, failed to file returns for the accounting year 2013-14 within the prescribed time. Despite receiving substantial income, the petitioner did not file the returns and sought an extension which was not complied with, leading to the initiation of prosecution.

Upon review, the Court found that the petitioner, being a taxable income Assessee, was required to submit returns for the income in the year 2013-14 by September 30, 2013, as per Section 139(1) of the Income Tax Act. Despite seeking an extension until September 30, 2016, the petitioner failed to file the return. Consequently, the provision under Section 276CC of the Income Tax Act applied for prosecuting the petitioner, with the prosecution being initiated only after the deadline of September 30, 2016.

The Court concluded that there was no legal error or infirmity in the complaint, which was duly taken on file by the Additional CMM II. As a result, the Criminal Original Petition for quash was dismissed, and the connected miscellaneous petition was closed.