Madras High Court
Shri Arvind Nandagopal vs The Assistant Commissioner Of Income ... on 26 July, 2022
Author: N. Sathish Kumar
Bench: N. Sathish Kumar
Crl. O.P. No. 17182 of 2022
IN THE HIGH COURT OF JUDICATURE AT MADRAS
Dated: 26/7/2022
CORAM
THE HONOURABLE MR.JUSTICE N. SATHISH KUMAR
Crl. O.P. No.17182 of 2022
and
Crl.M.P.Nos.10388 and 10390 of 2022
Shri Arvind Nandagopal ... Petitioner
Vs
The Assistant Commissioner of Income Tax
Central Circle – 2 (1)
No.146 M.G.Road
Chennai 600 034. ... Respondent
PRAYER : Criminal Original Petition filed under Section 482 of Cr.P.C. to call
for the records and quash the complaint in E.O.C.C.No.256 of 2018 on the file of
Additional Chief Metropolitan Magistrate, Economic Offices – II, Egmore,
Chennai.
For Petitioner ... Mr.T.Vasudevan
For Respondents ... Mrs.M.Sheela
Special Public Prosecutor
Page No:1/6
https://www.mhc.tn.gov.in/judis
Crl. O.P. No. 17182 of 2022
ORDER
This Criminal Original Petition has been filed to quash the complaint in E.O.C.C.No.256 of 2018 on the file of Additional Chief Metropolitan Magistrate, Economic Offices – II, Egmore, Chennai, for the offence punishable under Section 276 CC of the Income Tax Act, 1961.
2. It is the case of the prosecution that the accused have failed to submit his return for the assessment year 2014 – 15, as required under Section 139 (1) of the Income tax Act, 1961. Therefore, notice was issued, under Section 142 (1) of the Income Tax Act, on 19/6/2015. Thereby, prosecution has been launched which has taken cognisance in E.O.C.C.No.256 of 2018.
3. Heard Mr.T.Vasudevan, learned counsel for the petitioner and Mrs.M.Sheela, learned Special Public Prosecutor for the respondent.
4. The learned counsel appearing for the petitioner submitted that he has filed the return of income on 31/3/216, within the extended time as provided in Section 139 (4) of the Income Tax Act, 1961 and in the return of income, there Page No:2/6 https://www.mhc.tn.gov.in/judis Crl. O.P. No. 17182 of 2022 was a refund due to him to the tune of Rs.37,370/-, which was also accepted and refunded under Section 143 (1) of the Income Tax Act.
5. The learned counsel appearing for the petitioner submitted that even after filing of the return of income under the extended time limit available under the Income Tax Act, the petitioner received a show cause notice on 19/12/2017. It is his contention that as per Section 139 (4) of the Income Tax Act, he is entitled to file return even one year after the expiry of the period of time provided for relevant year. Hence submitted that return has been filed on 31/3/2016.
6. Learned counsel appearing for the respondent submitted that it is mandatory on the part of the accused to file the return of income before the stipulated date and the accused ought to have filed his return of income for the Assessment Year 2014 – 2015 on or before 31/7/2014. But the accused had filed his return of income on 31/3/2016, which is beyond the time limit prescribed under Section 139 (1) of the Income Tax Act. Page No:3/6 https://www.mhc.tn.gov.in/judis Crl. O.P. No. 17182 of 2022
7. It is relevant to extract 276 CC of the Income Tax Act, 1961.
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 115 WD or by notice given under sub-Section (2) of the said Section or Section 115 WH or) the return of income which he is required to furnish under sub-Section (1) of Section 139 or by notice given under [Clause (i) of sub-Section (1) of Section 142] or Section 148 (or Section 153 A), 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 (two) 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 115 WD or] return of income under Page No:4/6 https://www.mhc.tn.gov.in/judis Crl. O.P. No. 17182 of 2022 sub-section (1) of Section 139 -
(i). for any assessment year commencing prior to the 1st day of April, 1975 ; or
(ii). For any assessment year commencing on or after the 1st day of April, 1975, if -
(a). the returns is furnished by him before the expiry of the assessment year, or
(b). the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self- assessment tax, if any, paid before the expiry of the assessment year, and any tax deducted or collected at source, does not exceed ten thousand rupees].
8. On a careful perusal of sub clause (i), makes it very clear that in order to bring the charge of criminal prosecution, a willful act on the part of accused is required to be proved.
9. Admittedly, in the instant case on hand, there is no evasion of tax. It is not the case that no return has been filed. In fact, return has been filed and refund has also been ordered. In such a view of the matter, this Court is of the view that there is no willful failure on the part of the petitioner to file return. Page No:5/6 https://www.mhc.tn.gov.in/judis Crl. O.P. No. 17182 of 2022 N. SATHISH KUMAR, J mvs.
Therefore, offence under Section 276 CC would not be attracted. Hence complaint filed by the respondent stand quashed.
10. In the result, this Criminal Original Petition is allowed and the complaint in E.O.C.C.No.256 of 2018, pending on the file of Additional Chief Metropolitan Magistrate, Economic Offices – II, Egmore, Chennai, is quashed. Consequently, the connected Criminal Miscellaneous Petitions are closed.
26/7/2022 Index : Yes / No Internet: Yes Speaking/non speaking order mvs.
To
1. The Additional Chief Metropolitan Magistrate, Economic Offices – II, Egmore, Chennai.
2. The Assistant Commissioner of Income Tax Central Circle – 2 (1), No.146 M.G.Road, Chennai 600 034.
3. The Public Prosecutor, High Court, Madras. Crl. O.P. No.17182 of 2022 Page No:6/6 https://www.mhc.tn.gov.in/judis