The department has launched prosecution for willful evasion of tax for delay in payment of admitted tax. On writ allowing the petition the Court held that the assessees had since cleared the dues and as on date no tax dues were payable in respect of the years in question. Inasmuch as the liability had been admitted in the counter-affidavit and inasmuch as the tax had been subsequently paid, continuance of the criminal prosecution would only amount to an abuse of legal process. The criminal proceedings were to be quashed. (AY.2012-13 to 2015-16)
Bejan Singh Eye Hospital Pvt. Ltd. and Ors. v. IT Department (2020) 428 ITR 206 (Mad.)(HC)
S. 276C : Offences and prosecutions-Willful attempt to evade tax- Delay in payment of tax-Admission of liability in return and subsequent payment of tax-Criminal proceedings quashed. [S. 276(2)]