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2022 (1) TMI 45 - HC - Income Tax


Issues: Quashing of proceedings in E.O.C.C.No.223 of 2016 under Sections 276CC, 276C(1) and 276C(2) of the Income Tax Act, 1961.

Analysis:
The petitioner filed a petition seeking to quash the proceedings in E.O.C.C.No.223 of 2016, which were pending for offenses under Sections 276CC, 276C(1), and 276C(2) of the Income Tax Act, 1961. The prosecution alleged that the accused failed to file an Income Tax return for the Assessment year 2013-14 despite a showcause notice. The petitioner contended that the prosecution was based on the wrong premise that he did not file his return, as he had inadvertently been issued two PAN cards. The petitioner had surrendered the second PAN card and filed income tax returns for the correct PAN number without any default. The Special Public Prosecutor argued that applying for two PAN cards was incorrect, and since no returns were filed for the second PAN card, the prosecution was justified. The Court noted the issuance of two PAN cards and the petitioner's repeated requests to surrender the second card, which was eventually done. The Court held that since the petitioner had surrendered the second PAN card and filed returns for the correct PAN number, there was no basis for prosecution for willful default in filing income tax returns. Therefore, the Court quashed the proceedings in E.O.C.C.No.223 of 2016.

Conclusion:
The High Court allowed the Criminal Original Petition and quashed the proceedings in E.O.C.C.No.223 of 2016 pending before the Additional Chief Metropolitan Magistrate, Economic Offences-I, Egmore, Chennai. The Court found that the continuation of the prosecution against the petitioner was unjustified as he had surrendered the second PAN card and filed income tax returns for the correct PAN number. Consequently, the connected miscellaneous petitions were closed.

 

 

 

 

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