2025 (2) TMI 93 - SCH - Income Tax

Prosecution Proceedings initiated u/s 276C - Bogus LTCG - guilty mind i.e. mens rea - willful evasion of tax on claims made under the head LTCG/Short Term Capital Loss - allegation of crime invoking Section 200 of the CrPC for offence punishable under Section 276C - HC 2024 (1) TMI 1007 - KARNATAKA HIGH COURT decided mens rea is an element that is to be present in a proceeding under Section 271 of the Act. The mere fact of not accurate tax not exact tax or erroneous tax would not lead to the proceedings under Section 276 of the Act. Thus proceedings instituted against the petitioners cannot but be termed to be an error in law. Order taking Cognisance is not in compliance with applicable law and therefore is set aside. HELD THAT - Since the other connected petitions 2024 (12) TMI 1180 - SC ORDER have already been dismissed by this Court the present petitions also stand dismissed on the similar terms leaving the question of law open if any to be decided in some other appropriate matter.

Summary

The Supreme Court, presided over by HON'BLE MR. JUSTICE PANKAJ MITHAL and HON'BLE MR. JUSTICE S.V.N. BHATTI, issued an order concerning the dismissal of certain petitions. The Court condoned the delay in filing but dismissed the present petitions, aligning with the dismissal of connected petitions [SLP(Crl.) Nos. 18209/2024, 18210-18211/2024, and 18212-18213/2024]. The Court explicitly left "the question of law open, if any, to be decided in some other appropriate matter." All pending applications related to these petitions were also disposed of.