2023 (9) TMI 989 - SCH - Income Tax

Prosecution Proceedings u/s 276CC and 276C(2) - non furnishing the return and paying the tax on time - Presumption as to culpable mental state - Petitioner/ assessee contend that the petitioner on his own volition had filed his return for the assessment year 2013-14, albeit delayed return, well before the assessment order along with the payable tax. Yet the department has accorded sanction for prosecution of the assessee with the observation that there is a statutory presumption against him under Section 278E of the IT Act. As submitted that there is no mens rea/ intention to evade tax as the return and the payable tax with interest, was paid well before the assessment order and the return furnished by the assessee, was also accepted by the assessing officer. Issue notice, returnable in four weeks.

Summary

The Supreme Court of India heard a case where the petitioner filed a delayed return for the assessment year 2013-14 before the assessment order was issued. The department sanctioned prosecution against the assessee despite the tax and interest being paid before the assessment order. The Court issued notice and stayed further proceedings.