Law:

Section:

Section 276CC of the Income-tax Act, 1961 - Offences and prosecution - Failure to furnish returns of income - Assessment year 1985-86 - After amendment of section 139 on and from 1-4-1971, mere charging of interest by the ITO can be deemed to be implied extension of time to file the return which would in effect exclude wilful default and consequent prosecution - Held, no FACTS For the assessment year 1985-86, on the petitioner's failure to file the return despite repeated notices assessment was completed on 29-3-1988 ex parte under section 144 and the assessment order showed that interest had been levied under section 139(8) and also under section 217. Prosecution proceedings were also initiated against the petitioner under section 276CC. On petition under section 482 of the Code of Criminal Procedure, 1973 to quash the prosecution proceedings initiated against the petitioner, it was contended that once interest was levied under section 139(8) prosecution could not be maintained for failure to file return in time. HELD The proviso to section 139(1), while vesting discretion in the ITO to extend the date for furnishing the return, on an application made in the prescribed manner, provides that, notwithstanding that the date is so extended, interest shall be chargeable in accordance with the provisions of section 139(8). If this proviso is read along with section 139(1)( a) and (b ), provisos (i), (ii ) and (iii), as it existed earlier to 1-4-1971, it is clear that up to any period falling beyond the dates mentioned in clauses (i) and (ii), interest at nine per cent per annum shall be payable from the first day of October or the first day of January, as the case may be, of the assessment year to the date of the furnishing of the return. Provisos (i) and (ii) denote that the ITO, then, had the discretion to extend time up to a period not extending beyond the 30th day of September of the assessment year, without charging any interest under (ii) and up to the 31st day of December of the assessment year without charging any interest under (ii ). It is apparent that, after 1-4-1971, notwithstanding extension of date for filing return, interest shall be chargeable in…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492