NE NEWS SERVICE
CHENNAI, AUG 30
The Income Tax Department (TN&P), Chennai on Thursday announced that it has got six conviction orders in two cases during the month of August 2024 for willful attempt to evade payment of Income-tax. The Income Tax Department TN&P Region has so far obtained 14 convictions up to August 2024 during this financial year.
The conviction orders obtained in the two cases during August 2024, were in respect of violations deemed as offences under section 276C (2) & 276CC of the Income Tax Act, 1961, committed by M/s Oriental Enterprises, a firm, assessed to tax under the jurisdiction of Principal Commissioner of Income Tax-3, Chennai and and M/s. Sri Sarvalakshmi Chit Funds India P. Ltd., a company, assessed to tax under the jurisdiction of Principal Commissioner of Income Tax, Central-1, Chennai, respectively.
Court imposes a fine of Rs 2 lakh on Oriental Enterprises partners
In the case of M/s Oriental Enterprises, the return of income was filed belatedly by the firm for the FY 2012-13 relevant to the AY 2013-14 on 21.01.2015, admitting an income of Rs. 1.05 crore and a tax liability u/s 140A of Rs. 23.84 lakh. However, the assessee firm failed to remit the self-assessment tax at the time filing the return of income as mandated u/s 140A of the Income Tax Act.
Consequently, sanction u/s 279(1) was accorded by the then Principal Commissioner of Income Tax -5, Chennai for initiating prosecution proceedings against the assessee firm for wilful attempt to evade the payment of tax invoking provisions of section 276C(2) of IT Act, 1961 and a prosecution complaint was filed before the Additional Chief Metropolitan Magistrate (ACJM), Economic Offences-I, Chennai in EOCC No. 133/2017, against the assessee firm.
“The ACJM, EO-1 Court taking cognisance of the offence committed framed the charges against the assessee firm. L. Muralikrishnan, 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 Addl. Chief Metropolitan Magistrate, Economic Offences-I, Chennai vide order dated 02.08.2024 held that the assessee firm was guilty of the offence charged u/s 276C(2) of the IT Act, 1961 for the AY 2013-14 on the ground that the assessee firm and its partners had wilfully evaded payment of self-assessment tax of Rs. 23,84,378 exhibiting gross indifference towards the provisions of Income Tax Act and legal proceedings,” the release said.
In pursuance to the above findings, the ACJM passed an order of judgment holding the assessee firm guilty of the offence charged u/s 276C(2) of the IT Act, and sentenced the assessee firm imposing a fine of Rs. 2 lakh which would be payable by the partners of the firm. It was ordered that in case of default in payment of the fine by the partners, they shall undergo Simple Imprisonment for 1 month each.
Court imposes Rs 4 lakh penalty on Sri Sarvalakshmi Chit Funds
In the case of M/s. Sri. Sarvalakshmi Chit Funds India P. Ltd., a search action u/s.132 of the IT Act was conducted at premises of the assessee company case on 28.01.2015. Subsequently, notice(s) u/s 153A of IT Act, 1961 for the AYS 2011-12 to 2014-15 and a notice u/s 142(1) for AY 2015-16 requiring the assessee company to file return of income was issued. The assessee company failed to file return of income for the AYS 2011-12 to 2014-15 within the due date specified in the notice u/s.153A and also, voluntarily did not file return of income within the due date specified u/s.139(1) of the Act nor within the due date specified in the notice under 142(1) of the Act for AY 2015-16. Consequently, sanction u/s 279(1) for prosecution u/s 276CC for the above defaults were issued and complaints were filed against the assessee company before the Addl. Chief Metropolitan Magistrate (ACJM), Economic Offences-II, Chenna in EOCC Nos. 604 to 607 and 623 on 24.11.2017 & 16.12.2017 respectively.
“The ACJM, EO-II Court taking cognisance of the offence committed framed the charges against the assessee company. M. Sheela, Special Public Prosecutor appeared on behalf of the Department during the trial proceedings.
On examination of the evidences brought on record by the prosecution, the Addl. Chief Metropolitan Magistrate, Economic Offences-II, Chennai vide order dated 08.08.2024 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 AYS 2011-12 to 2015-16 stood proved against the assessee company beyond reasonable doubt and passed a judgment convicting the assessee company. The Hon’ble 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 lakh for AY 2011-12 and Rs 1 lakh for each of the AYS 2012-13 to 2015-16 on the assessee company which would be payable by the directors of the company. It was held that in case of default in payment of the fine by the directors, they shall undergo Simple Imprisonment for 1 month each,” the release added.
