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2023 (6) TMI 717 - DSC - Income TaxOffence u/s 276CC r.w.s 278E - Prosecution proceedings against the company and its directors - Failure to file to ITR - Directors responsibility of paying taxing of company - accused was having taxable income but they did not file return of income though every company is liable to file a return of income for an assessment year by the due date - accused nos. 02 and 03 being directors are responsible for paying tax. HELD THAT:- The accused have failed to discharge burden that they have not committed willful default in filing of return. Therefore, the ratio of the authority of S. Sunderam Pillai V/s. V.R. Pattabiraman, [1985 (1) TMI 306 - SUPREME COURT] will not be applicable here. Accused have failed to file return of A.Y. 20142015 in time. Accused nos. 02 and 03 are directors of accused no. 1 company. They have not denied their directorship. Therefore, they are responsible for the defaults made by accused no. 1. Hence, it can safely concluded that the complainant has proved the guilt of accused under section 276CC read with Sec. 278E of the Act beyond reasonable doubt. In the result, answer point No. 01 in the affirmative. Section 276CC of the Act prescribes rigorous imprisonment up to seven years and minimum punishment of six months. Considering the circumstances of the case and request of the accused and their advocate, a minimum punishment will suffice the purpose. Therefore, the accused are liable for said minimum punishment along with fine. ORDER i) Accused No. 1 M/s. Saloni Jewellers Pvt.Ltd. is convicted under section 248 (2) of the Code of Criminal Procedure for the offence punishable under section 276CC of The IncomeTax Act, 1961 and sentenced to pay the fine of Rs. 5,000/ (Rs. Five Thousand only). ii) The accused No. 2. Jitendra Fatechand Jain and accused No. 3 Kiran Fatechand Jain are convicted under section 248 (2) of the Code of Criminal Procedure for the offence punishable under section 276CC of The Income Tax Act and sentenced to suffer rigorous imprisonment for a period of six months each and to pay the fine of Rs. 5,000/ (Rs. Five Thousand only) each in default of payment of fine, the accused No. 2 and 3 shall undergo simple imprisonment for a period of 30 days.
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