TMI Blog2018 (10) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... tion case, the Court shall always presume culpable mental state and it is for the accused to prove the contrary beyond reasonable doubt. No doubt, this presumption is a rebuttable one. In present case, as is evident from complaint, there is definite finding under section 144 of Income Tax Act that accused/petitioner had ₹ 20,20,420/- income in assessment year 2000-2001; Even appeal preferred by petitioner has been dismissed. The ground taken that there was no wilful default on behalf of petitioner in concealing the income is not tenable, because it is factual defence, which is to be proved during course of trial. The criminal court has to judge the case independently on the evidence placed before it. So complaint lodged by responde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 26.02.2001 notices were issued to the petitioner under Section143 (2) of the Income Tax Act. In the said proceedings, the income of the petitioner was assessed to be ₹ 20,20,420/- on the ground that the petitioner has not participated in the proceedings vide Assessment Order dated 25.03.2003 passed under Section 144 of the Income tax Act. 4. Being aggrieved of the aforesaid Assessment Order dated 25.03.2003, petitioner filed a statutory appeal before the Commissioner of Income Tax (Appeals) Jammu Headquarters at Amritsar under the Income Tax Act, and the same was dismissed vide order dated 16.12.2003. The penalty imposed upon the petitioner was to the tune of ₹ 6,21,020/- under Section 271(1) (C) of the Income Tax Act, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titioner which is sine-qua-non for maintaining the compliant; that the learned Magistrate while passing the order impugned has not clearly discussed the reasons on the basis of which he has formed his opinion regarding taking cognizance of the complaint; that none of the ingredients of Sections 276(C) /277 of the Income Tax Act are coming forth from the perusal of the complaint; that the learned Magistrate before taking the cognizance of the matter ought to have recorded his satisfaction in the order of taking cognizance, which has not been done in the instant case, which renders the order impugned totally vitiated and the complaint together with the order impugned deserves to be quashed. 6. I have considered the contentions of petitione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court, also be liable to fine. Explanation.- For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person- (i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or (ii) makes or causes to be made any false entry or statement in such books of account or other documents; or (iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or (iv) causes any other circumstance to exist which will h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llection of taxes. The Income-tax Act seeks to enforce tax compliance in a three fold manner; namely 1) Imposition of interests 2) Imposition of penalties and 3) Prosecutions. In the fight against tax evasion, monetary penalties are not enough. When a calculating tax dodger finds it a profitable proposition to carry on evading taxes over the years, if the only risk to which he is exposed is a monetary penalty in the year in which he happens to be caught. The public in general also tends to lose faith and confidence in tax administration when a tax evader is caught, but the administration lets him get away lightly after paying only a monetary penalty- when money is no longer a major consideration with him if it serves his business interest. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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