2021 (12) TMI 1461 - SC - Income Tax

Offence u/s 277 - evasion on account of misstatement or a wrong statement - non- payment of any tax before uploading of the returns - petitioners did not have money to make payment of the income tax - prosecution against all the directors of the company - reverse burden of proof - proof of willful evasion of tax or not? - HELD THAT - We are not inclined to interfere with the impugned order and hence the special leave petition is dismissed. The dismissal of the special leave petition would not be construed as approval of the observations made in the impugned judgment - Section 202 of the Code of Criminal Procedure 1973. Neither the dismissal nor the findings recorded in the impugned order reflect on other proceedings under the Income Tax Act 1961.

Summary

The Supreme Court dismissed the special leave petition without interfering with the impugned order. The dismissal does not imply approval of the observations in the impugned judgment regarding Section 202 of the Code of Criminal Procedure, 1973. The decision does not affect other proceedings under the Income Tax Act, 1961. Pending applications were disposed of.