The Mumbai Sessions Court confirmed conviction under Section 276CC of the Income Tax Act, 1961 on the ground that there was filing of the Income Tax Returns (ITR) of a company being director but failure to file the individual ITR.
The accused, Hema Chetan Shah, was issued a notice under Section 153A of the Income Tax Act for filing Income Tax Return for the relevant accounting year within 30 days from the receipt of the notice.
The Court of Additional Sessions Judge, Dr. AA. Joglekar, added that while prosecuting the offence under Section 276CC of the Income Tax, existence of mens rea can be presumed and it is for the accused to prove the contrary.
Section 276CC of the Income Tax Act provides for punishment in cases where a person wilfully fails to furnish the income tax return in due time, which he is required to furnish under Section 139 (1) or in pursuance of the notice issued under Section 153A of the Income Tax Act, 1961.
The accused was convicted of the said offence by the Court of Additional Chief Metropolitan Magistrate, who also directed him to pay the fine. The accused challenged the order by filing an appeal before the Additional Sessions Judge.
The accused submitted before the Sessions Court that he was prevented from filing the Income Tax Return since the relevant files/papers were in custody of the Income Tax Department after search and seizure operations were conducted against the Company in which the accused stood as a director. Thus there was no wilful default was committed by the accused in filing the Income Tax Return and therefore, no criminal liability can be charged against him.
The Court observed that “It is also rightly inferred that, when the accused himself states for receipt of documents in xerox form and still failed to comply with the notice it was incumbent upon the accused to have cleared the cloud of suspicion.”
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