Law:

Section:

Section 276C of the Income-tax Act, 1961 - Offence and prosecution - Wilful attempt to evade tax, etc. - Assessment year 2003-04 - Where assessee had deposited a part of tax dues subsequent to issue of notice under section 276C with a prayer for extension of time and balance amount was paid subsequently before expiry of period stipulated in notice, there was no wilful attempt on part of assessee under section 276C to evade payment of tax and, hence, prosecution under section 276C was to be quashed [In favour of assessee] Soon after the notice under section 276C(2) was issued, the petitioner/assessee made a part payment of tax and even before the expiry period stated in the aforesaid notice, he filed a petition for extension of time on account of financial incapacity. The balance amount was paid before the expiry of the period stated in said notice. Held that there had been no wilful evasion on the part of the assessee to evade the payment of tax. As such the impugned order taking cognizance under section 276C(2) was quashed. CASES REFERRED TO Gulab Chand Sharma v. H.P. Sharma, CIT [1974] 95 ITR 117 (Delhi) and ITO v. Chiranjilal Cotton Industries [2002] 254 ITR 181 (Punj. & Har.). Ramesh Prasad Singh for the Petitioner. Harshvardhan Prasad and N.K. Prasad for the Respondent. JUDGMENT Samarendra Pratap Singh, J. - Heard the learned counsel for the parties. 2. The petitioner has prayed for quashing the order dated March 30, 2006, passed by the Presiding Officer, Special Court, Economic Offences, Patna, in Complaint Case No. 336C of 2006 whereby cognizance has been taken of the offence under section 276C(2) of the Income-tax Act, 1961, which relates to wilful evasion of tax. The provision of section 276C(2) states that if a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under the Act, he would be criminally prosecuted, apart from the penalty, etc. 3. The petitioner submits that he has paid the entire tax and in any view of the matter there was never any wilful evasion of the tax. Learned counsel submits that it would appear from the record that the petitioner filed his return for the assessment year…

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