Law:

Section:

On a mere anticipation or contemplation that there was possibility of accruing liability after finalization of regular assessment proceedings, it cannot be said that accused are liable to conviction under section 276(1) Section 276C of the Income-tax Act, 1961, read with sections 181 and 193 of the Indian Penal Code, 1860 - Offences and prosecution - Wilful attempt to evade tax, etc. - Consequent upon search and resultant seizure of cash and locker keys, department besides making assessment, also initiated criminal prosecution against respondents for having committed offences under sections 276C and 277, as well as under sections 181 and 193 of IPC - Departmental proceedings, however, ended favourably, and, accordingly, trial court also acquitted respondents, finding that there was neither intention on their part to defraud department nor any attempt to evade tax - Whether in an appeal against order of acquittal, High Court should interfere only if of trial court suffers from illegality or is manifestly erroneous - Held, yes - Whether necessary mens rea is required to be established by prosecution to attract provisions of section 277 or section 276C, and since ITO was unable to trace sources of income and lockers were hired in October-November, 1981 no culpable mens rea could be attached to respondents, more so when they had time to file return for the year 1981-82 - Held, yes - Whether by applying presumption under section 132(4A), ingredients of offences under sections 276C and 277 could be said to have been established - Held, no - Whether at a stage when return was not filed and there was still time for filing it, it could not be said that respondents committed any offence under section 276C(1) or that any such allegation would constitute offence, and that there was an attempt to evade payment of tax, etc. - Held, yes - Whether even before act of attempt to evade is started, on a mere anticipation or contemplation that there was possibility of accruing liability after finalisation of regular assessment proceedings, it could not be said that respondents were liable for conviction under section 276C - Held, yes - Whether considering fact that departmental…

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