Burden lies on Assessee to Show absence of wilful intention to file Income Tax Return: Madras High Court [Read Judgment]

The Madras High Court held that the burden lies on assessee to show absence of wilful intention to file Income Tax Return.

The petitioner, Raman Krishna Kumar who had taxable income for the Financial Year 2012 – 2013 / Assessment Year 2013-2014, had not filed the Annual Return as mandated under Section 139[1] of the Act, 1961, nor under the extended time under Section 139[4] of the said Act. It had been stated that the petitioner herein had received substantial income in the form of salary amounting to Rs.68,71,731/- and had also indulged in high end transactions with respect to purchase and sale of mutual funds and with respect to credit card transactions.

The respondent contended that owing to non-filing of the Income Tax Returns, suspicions had arisen over the source of funds for such transactions. It had also been contended that several Show Cause Notices had been issued, but there was no reply by the petitioner herein. Finally, the petitioner had condescended to give a reply for the Show Cause Notice. The respondent contended that the petitioner had deliberately not filed the Income Tax Returns within the stipulated period and therefore, the respondent was not able to assess the income for the escaped assessment, for which the Return should have been submitted.

The single bench of Justice CV Karthikeyan held that the burden lies on the assessee to show that he had no wilful intention not to file the Return. Any explanation to discharge such burden can be tested only during the course of trial.

“This Court cannot presume that the petitioner herein is innocent of any of the offences complained. It is for the petitioner to establish such innocence. The platform for establishing such innocence is the Court where the trial is to be conducted and in the present case, that particular Court is the Court of the Additional Chief Metropolitan Magistrate/EO-I, Egmore, Chennai,” the court said.

“A direction is given to the learned Additional Chief Metropolitan Magistrate/EO-I, Egmore, Chennai, to commence trial and to complete the same on or before 31.01.2022. The petitioner is directed to cooperate in the trial process,” the court added.

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