The single bench of the Karnataka High Court, in a recent decision observed that furnishing false declaration at the time of filing IT return and evasion of tax are separate offences and the CBDT circular prescribing monetary limit is not applicable in case of the former. While upholding the proceedings of the Revenue, the Court confirmed that furnishing false declaration at the time of filing IT return would attract penalty under the Income Tax Act as well as criminal punishment.
In the instant case, the petitioner, who is chartered accountant at the time of submitting his IT return, filed a tampered document as evidence of payment of tax.The department initiated criminal complaint under section 200 of the CrPC for the offence punishable under section 276(C)(2) and section 277 of the Income Tax Act. The petitioner approached the High Court challenging the proceedings by relying upon the circular as per which no prosecution could be launched if the amount attempted to evade is less than Rs. 25,000/-. The petitioners pointed out that in the instant case, the amount is only Rs. 1,465/-.
Dismissing the petition, the Court the Court observed that the circular prescribing monetary limit is not applicable in the instant case since the allegation against the petitioner is in connection with filing of false declaration, not evasion of tax. The Court clarified that both these offences are separate.
“The question of evading the tax and the consequential monetary limit in launching the prosecution is an alien consideration. It is not a case of evading the tax. It is a case of filing false declaration while submitting return. Submission of a false declaration is quite different from evading the tax. ”
Read the full text of the Judgment below.
