TMI Blog2022 (11) TMI 736X X X X Extracts X X X X X X X X Extracts X X X X ..... re filed had an element of concealment on any factual aspects and tried to evade tax, which is liable to paid. There is no dispute regarding the claims made by the petitioners in their income tax returns. Having received the notice, the petitioners have paid additional amoun towards interest and other charges, apart from the assessed tax. It was stated that due to financial difficulties beyond control, the amount could not be paid in time. This is not a case wherein false declaration is made or that the department has found that there is a deliberate attempt to evade tax by suppressing material information. Whether there is willful delay or not are discernible from the facts of the case. Conduct of the petitioners itself would indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,44,060/-. After claiming a tax credit for TDS of Rs.53,016/, out of the admitted tax liability, as per the return of income, the accused filed return of Rs.38,00,170/-. However, the tax was not paid. 3. It is the case of the respondent that the accused has willfully defaulted in payment of self assessment tax of admitted income as required under Section 140A of the Income Tax Act, 1961 attracting the provisions under Section 276C(2) of the Act, which penalizes such default. 4. The Income Tax Department issued a show-cause notice dated 09.06.2016 which was served on the petitioners/accused. The petitioners replied in writing on 23.06.2016 informing that there was no willful default or malafide intention to evade tax payment, but the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be construed as an attempt to evade tax rather it would suggest that there was a voluntary declaration to pay the tax. 8. In the case of Prem Dass v. Income Tax Officer [(1999) 5 Supreme Court Cases 241], the Hon ble Supreme Court held that a positive act on the part of the accused is required to establish a charge under Section 276-C(2). 9. Learned Senior Counsel also relied upon the judgment of this Court in Criminal Petition No.3164 of 2008, dated September, 2015, which was decided on similar lines. 10. The Learned Standing Counsel appearing on behalf of the Income Tax Department submits that whether there was an intention or not to evade tax is subject matter of trial and this Court under Section 482 of Cr.P.C canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... months but which may extend to seven years and with fine; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. Explanation .- For the purposes of this section, a wilful attempt to evade any ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers have paid additional amount of Rs.12,55,140/- towards interest and other charges, apart from the assessed tax. It was stated that due to financial difficulties beyond control, the amount could not be paid in time. 16. As already discussed, this is not a case wherein false declaration is made or that the department has found that there is a deliberate attempt to evade tax by suppressing material information. Whether there is willful delay or not are discernible from the facts of the case. 17. The conduct of the petitioners itself would indicate that it was a case of delayed payment of tax or deferred payment. The tax along with interest and penalty was accepted by the department without any reservations. Such delay in the payment w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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