2017 (9) TMI 1531 - SCH - Income Tax

Violation of sections 276C(2) and 277 - making false statements - error committed by the clerk of the chartered accountant - contention of the petitioner is that the tax amount is less than ₹ 25,000 and therefore an attempt to evade tax is covered by the circular - Held that - The present appeals are from a judgment of the High Court of Karnataka 2016 (10) TMI 1113 - KARNATAKA HIGH COURT in which the High Court has refused to quash the proceedings against the appellants. Whether the amount involved is less than ₹ 25,000 or less is irrelevant. Section 277 deals with making a false declaration. As the amount involved is small, and has already been paid with interest long ago, the Circular dated February 7, 1992 squarely applies and, therefore, no proceedings should have been filed as the amount is below ₹ 25,000. In view of this, we set aside the judgment of the High Court and quash the proceedings against the appellants.

Summary

The Supreme Court of India quashed proceedings against the appellants as the amount involved was small and had already been paid with interest long ago. The Circular dated February 7, 1992 applied, and no proceedings should have been filed as the amount was below Rs. 25,000. The High Court judgment was set aside, and the appeals were disposed of accordingly.