Offence u/s 276 CC of Income Tax Act Not Attract in absence of Tax Evasion: Supreme Court Dismisses SLP [Read Order]

The Supreme Court dismissed the Special Leave Petition (SLP) which arose out of the impugned final judgment and order passed by the High Court of Judicature at Madras wherein the court held that offence under section 276 CC of Income Tax Act, 1961 does not attract in absence of tax evasion.

The Commissioner of Income Tax filed an SLP against Arvind Nandagopal, the respondent. The case before the high court was that the accused had 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. 

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 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. 

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.  However, 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.

The High Court held that “ there is no evasion of tax.  It is not the case that no return has been filed.  A return has been filed and a 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 the return. Therefore, an offence under Section 276 CC would not be attracted.  Hence complaint filed by the respondent stands quashed”

A two-judge bench of Justice Bela M Trivedi and Justice Satish Chandra Sharma refused to interfere with the impugned order passed by the High Court and dismissed the Special Leave Petition.

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