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TMI Blog2024 (9) TMI 1527X X X X Extracts X X X X X X X X Extracts X X X X ..... for which, he has given his reply on 28.08.2017 which was not legally acceptable. Hence, after obtaining sanction to prosecute the case, the complaint has been filed before the learned II Additional Chief Metropolitan Magistrate, Economic Offences, Egmore, Chennai in E.O.C.C.No.29 of 2018, 3. The learned counsel appearing for the petitioner seeks to quash of the said complaint on the ground that the petitioner though failed to file his returns within the time stipulated during the said assessment year, he had no taxable income and that has been accepted by the Department by their own proceedings. Further, the alleged income from the sale of ancestral agriculture land been explained in the written submissions. The said income is not taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ayable by him on the total income determined on regular assessment after reducing the advanced tax, if any paid does not exceed Rs. 3,000/-. The sanction to prosecute, issued by the Principal Commissioner of Income Tax has dealt this issue and explained that the embargo of Rs. 3000/- in proviso B of Section 276 CC of the Income Tax Act applies only in cases where a regular assessment has been framed. However, in the instant case, no regular assessment has been framed for the year in question and therefore relying upon the judgment of Patna High Court rendered in Anil Kumar Sinha Vs. Union of India reported in 2013 35 taxmann.com 377 (Patna) which reads as below: "February 6, 2013 Section 276CC of the Income -tax Act 1961- Offence and Pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abuse of the process of Court. ● However, the revenue contended that the pre-requisite for filing complaint petition in case of search was failure of assessee to file the return of income inspite of issuance of several notices. On writ petition filed by the assessee. Held ● Section 276CC deals with the situation if the person willfully fails to furnish return in due time on the income which he is required to furnish under sub section(1) of Section 139 or by notice given under clause (1) of Section 142 of Section 153A, shall be liable for prosecution. In a case where the amount of tax which would have been evaded if the failure had not been discovered exceeding twenty five thousand rupees with rigorous imprisonment for a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rect. In the present case, the prosecution has been filed for non-submission of the return, even after notice to the petitioner after search and seizure as provided under Section 132. The issue is quite different than what was there before the Settlement Commission and , as such, whatever the finding was there by the Settlement Commission was given on its own fact and has no bearing on the present criminal proceedings[ Para 26] ● In this case, the complaint has been filed under Section 276 CC which is related to non-filing of return, eventhough on different occasions, notices were given to the petitioners to file necessary return but in spite therefore, the petitioners gave no response which lead to filing of the present case, where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in CIT Vs. Kerala Chemicals and Proteins Limited reported in 231 CTR 51 (KER) which has clearly dealt with the issue which is now subject matter for consideration holds that the assessee does not fall within the meaning and scope of a regular assessment to get the protection to the proviso to 278 CC of the Income Tax Act. Hence, he has to face the prosecution. 8. Records reveals that the trial in this case has already commenced and the complainant has been examined in chief by P.W.1 and cross examination is deferred at the request of the petitioner. 9. In the said circumstances, it is appropriate for the petitioner herein to face the trial and put forth his defence in the course of trial and seek remedy. Hence, the matter is no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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