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2014 (2) TMI 19 - SC - Income TaxWillful and deliberate failure to file returns - Held that:- Section 276CC applies to situations where an assessee has failed to file a return of income as required under Section 139 of the Act or in response to notices issued to the assessee under Section 142 or Section 148 of the Act - The proviso to Section 276CC gives some relief to genuine assesses who either file the returns belatedly but within the end of the assessment year or those who have paid substantial amounts of their tax dues by pre-paid taxes, from the rigor of the prosecution under Section 276CC of the Act – The appellant has failed to furnish sufficient reasons for not furnishing the return within time and the contention of the assessee that the omission was not wilful cannot be accepted. Section 276CC contemplates that an offence is committed on the non-filing of the return and it is totally unrelated to the pendency of assessment proceedings except for second part of the offence for determination of the sentence of the offence, the department may resort to best judgment assessment or otherwise to past years to determine the extent of the breach – The pendency of the assessment proceedings of the assessee doesnot relieve it from penalty prosecution. “The declaration or statement made in the individual returns by partners that the accounts of the firm are not finalized, hence no return has been filed by the firm”, will not absolve the firm in filing the ‘statutory return under section 139(1) of the Act - The firm is independently required to file the return and merely because there has been a best judgment assessment under Section 144 would not nullify the liability of the firm to file the return as per Section 139(1) of the Act. Further u/s 278E, the presumption as to culpable mental state, which was inserted by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986 – For offences u/s 276CC the court has to presume the existence of mens rea and it is for the accused to prove the contrary and that too beyond reasonable doubt - The appellants have to prove the circumstances which prevented them from filing the returns as per Section 139(1) or in response to notices under Sections 142 and 148 of the Act - Decided against petitioner.
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