ORDER :

1. This petition is filed to quash the proceedings against the petitioners/A1 to A3 in CC No.37 of 2018 on the file of Special Judge for Economic Offences, Hyderabad.

2. The 1st petitioner filed original return of income tax in the assessment year 2014-15 on 29.11.2014 declaring a total income of Rs.1,03,44,060/-. 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 same was on account of certain financial difficulties beyond control. Along with reply, a letter along with a copy of self assessment tax challan fo