2021 (12) TMI 265 - HC - Income Tax

Non billable warrant issued against the applicant as well as proceedings of Complaint Case u/s 276CC pending before Special Chief Judicial Magistrate, Varanasi - HELD THAT - Considering the facts and circumstances of the case, this court feels that an adequate opportunity should be provided before passing of such orders. Hence, the application is partly allowed and matter is remanded back to the court below to pass appropriate orders on the compounding application dated 8.8.2019 within a period of two months without granting any unnecessary adjournments to either of the parties, in accordance with law. Till the disposal of the compounding application dated 8.8.2019 the non-bailable warrants issued against the applicant shall be kept in abeyance.

Summary

Issues involved:
Application to quash non-bailable warrant and proceedings under Section 276CC of the Income Tax Act.

Analysis:
The applicant, a reputed doctor, filed an application under Section 482 Cr.P.C. seeking to quash the non-bailable warrant and proceedings against him under Section 276CC of the Income Tax Act. The applicant had not filed his income tax returns for the assessment years 2011-12 to 2014-15 due to unavoidable circumstances, as stated in the assessment order. It was argued that the applicant's father's illness and bedridden condition led to the delay in filing returns, without any prior intimation or notice by the department. The applicant, upon receiving notices under Section 148 of the Income Tax Act, promptly deposited the interest amount for the relevant years. Subsequently, a compounding application was filed before the Chief Commissioner of Income Tax, seeking compounding of the alleged offence under Section 276CC.

The applicant's counsel relied on a judgment of the Andhra High Court, emphasizing that conviction under Section 276CC requires the establishment of mens rea and wilfulness in failing to submit returns on time. The court considered the pending compounding application and remanded the matter back to the lower court for appropriate orders within two months, without unnecessary adjournments. The court directed that the non-bailable warrants against the applicant be kept in abeyance until the compounding application is disposed of. The application was finally disposed of with these observations.

In conclusion, the High Court allowed the application in part, providing the applicant with an opportunity for the compounding application to be decided by the lower court. The court emphasized the importance of considering the facts and circumstances of the case before passing orders and directed timely resolution of the compounding application without unnecessary delays.