Criminal Prosecution initiated mistakenly on Assessee who was not an Account Holder: Jharkhand HC quashes Prosecution initiated on Offence u/s 276CC of Income Tax Act
The Jharkhand High Court quashed the prosecution initiated on offence under section 276CC of the Income Tax Act, 1961 since the criminal prosecution was initiated mistakenly on the assessee who was not an account holder. Mrs Anita Gupta, the petitioner filed the petition for quashing the cognizance order dated 14.03.2019 passed by the Special Court (Economic Offence), in Economic Offence...
The Jharkhand High Court quashed the prosecution initiated on offence under section 276CC of the Income Tax Act, 1961 since the criminal prosecution was initiated mistakenly on the assessee who was not an account holder.
Mrs Anita Gupta, the petitioner filed the petition for quashing the cognizance order dated 14.03.2019 passed by the Special Court (Economic Offence), in Economic Offence Case whereby and whereunder, prima facie case is made out under Sections 276 CC of the Income Tax Act, 1961.
Rs. 47,44,205/- was deposited in the account of Garima Medicare bearing A/c No. 21884015000262 of Punjab National Bank, Ratu Road, Ranchi during the demonetization period from 08.11.2016 to 30.12.2016. The prosecution has been initiated since the account holder had failed to file her return as mandated under Section 139 of the Income Tax Act and thereby committed an offence under Section 276CC of the Income Tax Act, 1961.
As per section 276C if a person wilfully attempts to evade tax, penalty or interest or under-reports his income, then he shall be punished With rigorous imprisonment which shall not be less than 6 months but which may extend to seven years and with a fine where tax sought to be evaded exceeds Rs. 25 lahks.
The impugned order has been challenged on the ground that she was not the account holder rather it stood in the name of her husband Dinesh Kumar Gupta and by mistake of fact, she is being prosecuted in the instant case.
From the counter affidavit filed by the Income Tax department, they have admitted the assertion made on behalf of the petitioner that the said account does not stand in the name of the petitioner.
In view of the admitted position, the Coram Comprising of Justice Gautam Kumar Choudhary held that criminal prosecution was without any factual basis. The Court quashed the order dated 14.03.2019 passed by the Special Court (Economic Offence), Ranchi.
To Read the full text of the Order CLICK HERE
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