NE LEGAL BUREAU
CHENNAI, JAN 30
In a strong message against wilful tax default, the Income Tax Department, Tamil Nadu & Puducherry Region, has secured a conviction under the Income Tax Act, 1961, with the Chief Judicial Magistrate Court, Coimbatore, sentencing a real estate assessee for deliberate failure to discharge assessed tax liabilities.
With this order, the Department has now obtained five convictions during FY 2025–26 in cases arising from prosecution proceedings launched across the region, reinforcing enforcement action against non-compliance.
- Income Tax Department Secures Conviction for Non-Payment of Assessed Tax
- Five Convictions Achieved in FY 2025–26 in Tamil Nadu & Puducherry Region
- Survey Uncovered ₹3.04 Crore Assessed Income; ₹89.32 Lakh Tax Withheld
- Court Awards Three Months’ Rigorous Imprisonment and Fine
In the case under report, a survey operation under Section 133A of the Income Tax Act, 1961, was conducted on 12 July 2011 at the premises of an individual assessee engaged in the real estate business in Coimbatore, falling under the jurisdiction of Principal Commissioner of Income Tax–1, Coimbatore.
The survey resulted in the assessment of ₹3,04,26,354 as income for Assessment Year 2011–12. However, despite assessment, the assessee wilfully failed to pay tax amounting to ₹89,32,768, prompting the Department to initiate prosecution proceedings under Section 276C(2) of the Income Tax Act, 1961, which deals with deliberate failure to pay tax.
After examining the evidence and testimonies, the Chief Judicial Magistrate, Coimbatore, found the assessee guilty of the offence under Section 276C(2). The court passed its order on 12 January 2026, holding that the charge of wilful tax default stood proven beyond doubt.
The assessee has been sentenced to rigorous imprisonment for three months and directed to pay a fine of ₹10,000 for the offence committed for Assessment Year 2011–12.
During the trial, Josmin Mary, Income Tax Officer, deposed as one of the key witnesses, while K. Venkatesh, Special Public Prosecutor, represented the Income Tax Department before the trial court.
The conviction underscores the Department’s continued focus on deterrent enforcement of tax laws and serves as a reminder that wilful non-payment of assessed tax attracts stringent penal consequences under the Income Tax Act, 1961, the Department stated.
The prosecution was overseen by Easwar S., Additional Commissioner of Income Tax (Judicial), Office of the Commissioner of Income Tax (Judicial), Chennai.
