S. 276C : Offences and prosecutions – Wilful attempt to evade tax – Bogus purchase – Estimate of 12.5 per cent of Bogus Purchase upheld by CIT(A) and ITAT – No penalty was levied – High Court held that prima facie ingredients of offenses are satisfied – Assessee has wilfully and intentionally evaded his tax liability – Writ petition to quash the prosecution was dismissed. [S. 148, 279(1), Art. 226 Code of Criminal Procedure, 1973, S. 482]

The petitioner filed writ petition challenging the sanction of prosecution against the petitioner under section 276(1) of the Income -tax Act, 1961. Dismissing the petition the Hon’ble High Court held that where the Ld. Assessing Officer made an addition of 12.5 percent of purchases as bogus purchases and the same was upheld by the CIT(A) and ITAT. The Petitioner has wilfully and intentionally evaded his tax liability. The prima facie ingredients of the offense under section 276C(1) of the Income-tax Act, 1961 are satisfied. Writ petition to quash the prosecution was dismissed. (C.WP. No. 2698 of 2021 dt. December 07, 2021)

Nayan Jayantilal Balu v. UOI (Bom.)(HC) www.itatonline.org
Coram : Justice Mr. K. R. SHRIRAM & Justice Mr. AMIT B. BORKAR