NE BUSINESS BUREAU
CHENNAI, AUG 6
The Income Tax Department (TN&P), Chennai has got eight convictions till July during the current financial year 2024-25 in respect of the prosecution proceedings initiated against two assessees – one individual and a company- for offences committed under section u/s.276CC of the Income Tax Act, 1961 viz., for the failure to file return of income, for wilful evasion of payment of tax and failure to remit the TDS amount into the Government of India account, respectively.
The offences were committed by J. Srinivasan, an individual, assessed to tax under the jurisdiction of Principal Commissioner of Income Tax, Central-1, Chennai and M/s Selva Ganesh Constructions Pvt Ltd., a company, assessed to tax under the jurisdiction of Principal Commissioner of Income Tax-3, Chennai, respectively.
By regularly paying tax, the citizens are contributing in nation-building. With the advancement in the technology and digitization, no one can evade tax and get away easily, says an IT release.
Additional Chief Metropolitan Magistrate awards 2 years RI and Rs 1.75 lakh fine for not filing tax returns
In the case of. J Srinivasan, pursuant to the search action u/s.132 conducted on 28.01.2015 at the assessee’s premises, notice(s) u/s 153A of IT Act, 1961 was issued to him for the AYs 2009-10 to 2014-15 requiring him to file Return of Income within the stipulated date. For AY 2015-16 the assessee was voluntarily required to file return within the due date specified u/s.139(1) of the Act. The assessee failed to file return of income for the AYs 2009-10 to 2014-15 within the due date specified in the notice u/s.153A and also did not voluntarily file return of income within the due date specified u/s.139(1) of the Act for AY 2015-16.
Consequenlty, sanction u/s.279(1) for prosecution u/s.276CC for the above defaults was issued and complaints were filed against the assessee in the EOCC Court in Nos. 598 to 603 for AYs 2009-10 to 2014-15 on 24.11.2017 and No.622 for AY 2015-16 on 16.12.2017. The ACJM, EO-II Court taking cognisance of the offences committed framed the charges against the assessee. Sheela, Special Public Prosecutor appeared on behalf of the Department during the trial proceedings.
On examination of the evidences brought on record and considering the arguments put forth by the prosecution, the Additional. Chief Metropolitan Magistrate, Economic Offences-II, Chennai vide order dated 29.07.2024 held that the accused has wilfully and deliberately failed to file the return of income within the time mentioned in the notice u/s.153A dated 29.12.2015 for AYs 2009-10 to 2014-15 and within the due date u/s.139(1) for AY 2015-16. The judge held that the infraction committed by the assessee falls within the purview of section 276CC of IT Act 1961 and concluded that the charges framed against the accused u/s 276CC of IT Act stood proved and the accused deserved to be punished under the provisions of Section 276CC of Income Tax Act, 1961.
In pursuance to the above findings, the ACJM passed an order of judgment dated 29.07.2024 holding the assessee guilty of the offence charged u/s 276CC of the IT Act, and sentenced the assessee to undergo Rigorous Imprisonment of Two Years and imposed a fine of Rs.25,000 for each of the seven assessment years and in case of default in payment of the fine by the assessee, he shall undergo Simple Imprisonment of 3 months u/s 276CC of Income Tax Act, 1961.
ACJM imposes Rs 2 lakh fine on construction company
A prosecution complaint was filed by the Department during the year 2018 in the Economic Offences Court-II, Chennai in the case of M/s. Selva Ganesh Constructions Pvt Ltd for failure to file return of income disclosing the receipts to the tune of Rs.2,30,02,572/- received by it during the AY 2014-15. The ACJM, EO-II Court taking cognisance of the offence committed framed the charges against the assessee company.
On examination of the evidences brought on record by the prosecution, the Hon’ble Addl. Chief Metropolitan Magistrate, Economic Offences-II, Chennai vide order dated 03.07.2024 held that the accused company is found guilty of commission of the offence u/s 276CC of the Income Tax Act 1961 as the offence of failure to file return of income for the AY 2014-15 stood proved against the assessee beyond reasonable doubt and passed a judgment convicting the assessee company. The ACJM, held that the directors of the accused company are responsible and deserve to receive any sentence that may be imposed on the accused company on the basis of corporate criminal liability. Therefore, the ACJM imposed a fine of Rs.2,00,000/- (Rupees Two Lakhs only) on the assessee company which was to be paid by the directors of the company. Further, it was ordered that in case of default in payment of the fine by the directors, they shall undergo Simple Imprisonment for 1 month each.
