The absence of penalty imposition, acceptance of the return with interest, and setting aside of further assessment by the first appellate authority led to the quashing of the criminal proceedings.

JUDGMENT :

SANJAY KUMAR DWIVEDI, J.

1. Heard Mr. D.V. Pathy, learned counsel for the petitioner and Ms. Amrita Sinha, learned counsel for the opposite parties.

2. This petition has been filed for quashing the entire criminal proceedings including the order taking cognizance dated 18.03.2016 passed by the learned Special Judge, Economic Offence, Dhanbad in connection with Complaint Case being C.O. Case No. 01 of 2016, whereby, cognizance has been taken against the petitioner under Section 276CC of the Income Tax Act, 1961, pending in the court of the learned Special Judge, Economic Offence, Dhanbad.

3. The opposite party no. 2 has filed the complaint case being C.O. Case No. 01 of 2016 before the court of the learned Special Judge, Economic Offence, Dhanbad against the petitioner under Section 276CC of the Income Tax Act, 1961 pertaining to the Assessment Year 2013-14 alleging therein that a search was conducted in the case of accused on 19.02.2014 and subsequent case and his case was centralized with the Commissioner of Income Tax, Dhanbad vide order dated 27.08.2014. The accused Suresh Kumar Agarwal was an assessee in his individual capacity within the meaning of Income Tax. The income of Suresh Kumar Agarwal was taxable within the meaning of Income Tax Act for the relevant assessment year 2013-14 and as such he had to file his income tax return in due time i.e. within 15 days of receipt of notice under Section 153A dated 04.09.2014 before the Income Tax Department, Central Circle, Dhanbad. The accused was fully aware of the fact that he had to file his Income Tax return in due time. He willfully, deliberately, knowingly and having mens rea in his mind failed, neglected and avoided to file his Income Tax return for the assessment year 2013-14 within 15 days of notice under Section 153A dated 04.09.2014 with intent to escape from tax liabilities which was chargeable and imposable on him. The accused Suresh Kumar Agarwal ultimately filed Income Tax return for the assessment year 2013-14 on 04.02.2016 in ITR-4 showing total income from all sources at Rs. 81,63,930/- after lapse of almost 17 months without reasonable cause and excuse. The said assessee did not make any prayer along with the I.T. Return nor filed any petition for condonation of delay showing legal, reasonable and justified reasons as to why the delay of 17 months was caused in filing return for the assessment year 2013-14. The complainant served a notice dated 19.03.2015 fixing compliance on 06.04.2015 as to why prosecution under Section 276 CC of the Income Tax Act should not be launched against the accused. The accused kept mum from the date of the receipt of notice and no compliance was made. It was further alleged that after examining all the relevant documents, it is crystal clear that the accused deliberately, willingly, intentionally, deliberately and having mens rea in his mind failed, neglected and avoided to file his return on income for the assessment year 2013-14 in due time i.e. within 15 days of receipt of notice under Section 153A dated 04.09.2014. The Principal Commissioner of Income Tax (Central), Patna after considering all the facts and circumstances applied his judicial mind and opined that the accused did not file his return of income in due time i.e. within 15 days of receipt of notice under Section 153A dated 04.09.2014 rather filed his return on 04.02.2016 without reasonable cause and excuse. The letter dated 10.08.2015 for initiation of prosecution under Section 276CC of the Income Tax Act was issued and the accused in response thereto vide letter dated 13.08.2015 requested for 30 days time, which was duly considered and compliance was fixed on 18.09.2015, but neither accused nor his authorized representative appeared. The final show cause was issued on 29.09.2015 and in response thereto, the accused vide letter dated 12.10.2015 requested for 20 days time for preparation of return and filing of explanation and case was adjourned to 27.10.2015.