Allowing the petition the Court held that to punish the accused , there must be wilful attempt to evade payment of tax and he must be in passion of having the book with false entries or person should have made false entries in the books of accounts and omitting any entry in the statement of accounts . On the facts the assessee had voluntarily disclosed the undisclosed income to the department on the inspection conducted under section 132 of the Act . The Court also observed that the entire tax was paid . Accordingly the Court held that the offence under section 276(2) of the Act is not attracted against the assessee .The Court allowed the petition and quashed the entire proceedings pending before Chief Metropolitan Magistrate . ( Crl. OP.No. 31909 of 2019 dt 16 -3 -2020 ) (AY. 2013-14)
Kewalchnad M. Kothari v. DCIT ( 2020) 120 taxmann.com 91 / 274 Taxman 495 /(2021 ) 197 DTR 406/ 319 CTR 314 ( Mad) (HC)
S. 276C : Offences and prosecutions – Wilful attempt to evade tax – Delay in payment of tax and filing of return – Delay in handing over books of account- Criminal proceeding is held to be clear abuse of process of law – Proceedings pending before Chief Metropolitan Magistrate was quashed . [ S.132 , 276(2)]