TMI Blog2022 (6) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... have happened as interim order is operating in the case at hand throughout the pendency of these proceedings. In the light of what is quoted in the order of sanction we deem it appropriate to accept the submission of the learned counsel appearing for the petitioners more so on two grounds (i) since the offence alleged is compoundable and an opportunity ought to have been granted by the respondents/ department and (ii) though an opportunity is granted, the learned counsel for the petitioner submits, at that point in time the petitioner in Writ Petition No.112881 of 2019 was hospitalised and others were taking care of him - if one more opportunity is granted and compounding is permitted no prejudice would be caused to the Department. The other ground is that the interim order staying all further proceedings pursuant to the private complaint registered is operating in the cases at hand throughout and the prosecution has not proceeded further except cognizance being taken on the registration of private complaint by the respondents. Order - Writ petitions are allowed in part subject to the assessees /petitioners filing applications for compounding within 6 weeks from the date of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under the provisions of Section 276CC of the Act. Section 276CC reads as follows: 276CC. If a person wilfully fails to furnish in due time the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or by notice given under sub- section (2) of the said section or section 115WH or the return of income which he is required to furnish under subsection (1) of section 139 or by notice given under clause (i) of sub- section (1) of section 142 or section 148 or section 153A, he shall be punishable,- (i) in a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds twenty-five hundred thousand rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine; (ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine: Provided that a person shall not be proceeded against under this section for failure to furnish in due time the return of fringe benefits under sub-section (1) of section 115WD or return of income under sub-section (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the income-tax authorities specified in clauses (a) to (g) of section 116 shall not be inadmissible as evidence for the purpose of such proceedings merely on the ground that such statement was made or such account or other document was produced in the belief that the penalty imposable would be reduced or waived, under section 273A or that the offence in respect of which such proceeding was taken would be compounded. Explanation.-For the removal of doubts, it is hereby declared that the power of the Board to issue orders, instructions or directions under this Act shall include and shall be deemed always to have included the power to issue instructions or directions (including instructions or directions to obtain the previous approval of the Board) to other income-tax authorities for the proper composition of offences under this section. Sub-section (1) of Section 279 makes the offence under the chapter in which Section 276CC comes compoundable. Therefore, an opportunity to compound is available to an assessee who is alleged of offence under Section 276CC. 5. It is not in dispute that discussions had gone on between the assessees and the respondents and the assessees ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, that Shri. Milan Madhusudan Parikh has shown his income of Rs.1,64,96,584 from receipts from the same project called Golden Hillock Project for Financial Year 2011-12, where Bagwan family and Shri Milan Madhusudan Parikh were 50:50 partners under JDA for this project. Hence, an equal amount of Rs.1,64,96,584 should have also been reflected by members of Bagwan family in their returns of income for respective assessment year. Thus, during search action and post-search investigations, it is found that assessee had earned Rs.99,50,740/- from project Goldend Hillock in F.Y. 2011-12 but she had not filed return of income for AY 2012-13 despite having earned income of Rs.99,50,740/-. In view of above mentioned facts, it is apparent that assessee willfully attempted to evade the taxes and not filed any return of income for the FY 2011-12 i.e., A.Y. 2012-13 in respect of income accrued out of the above said Golden Hillock project which amounts to Rs.99,50,740/-. The fact of earning such income was very much within the knowledge the income generating activity carried out by Smt.Fatima Nasiruddin Bagwan and therefore she should have filed the return of income with above become ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er by appearing in person before the undersigned or through Authorised Representative or by filing a written explanation on or before 20.02.2019. Assessee neither appeared in person before the undersigned nor submitted any explanation. She was given one more opportunity to submit her reply on or before 06.03.2019. But, assessee failed to avail this final opportunity too. 7. Therefore, I am satisfied that Smt. Fatima Nasiruddin Bagwan has failed to provide any explanation, thereby proving that she has no explanation to offer on the transaction done by him. She has also failed to submit clarifications, if any, before the Investigaion authorities. Therefore, it is presumed that the Smt. Fatima Nasiruddin Bagwan has no explanation to offer in this regard. 8. For the detailed reasons as explained in the above Paras, I am satisfied that Smt. Fatima Nasiruddin Bagwan has willfully failed to furnish the returns of income even though there was taxable income in her hands. Hence, it is a fit case for launching of prosecution u/s 276CC of the Income Tax Act, 1961. 9. THEREFORE, I, R.Ravichandran, Principal Director of Income Tax (Investigation), Bengaluru in exercise of powers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... private complaint registered is operating in the cases at hand throughout and the prosecution has not proceeded further except cognizance being taken on the registration of private complaint by the respondents. 8. The learned counsel for the respondents also accedes to the fact that one more opportunity could be granted to the petitioners, but would submit that it should be within the time stipulated failing which they should not be permitted to have the benefit of this order. The submission sounds acceptance. 9. In the light of the afore-narrated facts and respective submissions made, I deem it appropriate to pass the following: O R D E R (i) The writ petitions are allowed in part subject to the assessees /petitioners filing applications for compounding within 6 weeks from the date of receipt of a copy of this order. (ii) The respondents shall pass appropriate order accepting or declining to accept such compounding within a reasonable time thereafter. (iii) If the petitioners do not avail of this benefit within 6 weeks from the date of receipt of a copy of this order, they would not be entitled to the relief granted and prosecution against them shall contin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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