Back
SUPREME COURT OF INDIA
M.M. SUNDRESH, ARAVIND KUMAR, JJ.
R. P. Darrmalingam – Appellant
Versus
Assistant Commissioner Of Income Tax – Respondent
Criminal Appeal No. 5494 of 2024 (@ SLP(Crl.) No. 16534 of 2023)
Decided on : 17-12-2024
ORDER :
1. Leave granted.
2. The appeal lies on a very narrow compass. The criminal proceedings have been initiated under Section 276CC of the Income Tax Act, 1961 (hereinafter referred to as ‘the IT Act, 1961’) against the appellant for non-filing of the revised income tax return within time.
3. Learned senior counsel appearing for the appellant submitted that the revised income tax return was filed belatedly as the concerned records were seized in pursuance to the seizure. Ultimately, the penalty proceedings under the IT Act, 1961 were dropped, and in fact refund has been ordered.
4. Learned counsel appearing for the respondent submitted that in view of the non-compliance of the mandate in not filing the revised income tax return within time, the criminal proceedings have been initiated against the appellant.
5. We are of the view that continuing the criminal proceedings would be unnecessary. We are dealing with a case where the appellant did in fact file the revised income tax return, and penalty proceedings which were initiated against the appellant itself have been dropped. As a consequence, refund was also ordered.
6. We are further supported by the reasoning given in the decision of this Court in ‘Guru Nanak Enterprises and Ors Vs. ITO, reported in (2005) 10 SCC 451.
7. Thus, considering the facts of the case in its totality, we are inclined to set aside the impugned order.
8. Accordingly, the impugned order stands set aside. Consequently, the criminal proceedings initiated under Section 276CC of the IT Act, 1961 against the appellant stands quashed.
9. The appeal is allowed accordingly.
10. Pending application(s), if any, shall stand disposed of.
Criminal proceedings under Section 276CC of the Income Tax Act are quashed when the appellant has filed the revised return and penalty proceedings have been dropped.
The main legal point established in the judgment is that willful concealment of income and failure to file income tax returns within the stipulated time constitute an offence under Section 276CC of t....
Compliance with notice under Section 148 of the Income Tax Act amounts to deemed compliance with Section 139, rendering penal provisions under Sections 276 (C) and 277 inapplicable.
The court established that willful failure to file income tax returns within the prescribed time is a punishable offence under Section 276CC of the Income Tax Act, and that the existence of mens rea ....
The determination of wilfulness in filing returns and paying taxes under the Income Tax Act, 1961 is a matter of fact to be adjudicated during trial, and the statutory presumption of culpable mental ....
The main legal point established in the judgment is the significance of timely filing of the Return of Income, the consequences of wilful attempt to evade tax, penalty, and interest chargeable, and t....
The court emphasized that criminal prosecutions should be stayed pending tax assessments to maintain legal coherence and prevent contradictory rulings.
An annulled penalty under the Income Tax Act negates the foundation for criminal prosecution for concealment unless reversed, thus quashing ongoing prosecution.
The court ruled that criminal prosecutions under the Income Tax Act must be stayed pending the outcome of related assessment appeals, emphasizing the interrelation between criminal and tax proceeding....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
