Tribunal dismissed the stay application of the assessee. Assessing Officer lunched the prosecution under S. 276C(2) for non-payment of determined tax. Assessee’s application for discharge was dismissed by Trial Court. On Criminal revision petition, allowing the petition, the Court held when department was aware of fact that assessee was agitating his case before Tribunal, which was final fact-finding body, there was no necessity to launch prosecution hurriedly because law of limitation under section 468 Cr. P.C. for criminal prosecution was excluded by Economic Offences (Inapplicability of Limitation) Act, 1974 . Court also observed that even otherwise, since it could not be concluded that assessee was willfully evading payment of tax, impugned order passed by Trial Court was to be set aside and, assessee was to be discharged from prosecution. 276(C) (AY. 1998-99)
Sayarmull Surana v. ITO (2019) 260 Taxman 397 / 173 DTR 338/ 306 CTR 354 (Mad.)(HC) www.itatonline.org
S. 276C : Offences and prosecutions-Willful attempt to evade tax– Stay petition dismissed by Tribunal-Quantum of appeal is pending– Launching of prosecution is held to be not justified – Prosecution was quashed and the assesee was discharged from the prosecution. [S. 276(2), Cr. PC S. 498, Economic Offences (In applicability of Limitation) Act, 1974)