The Karnataka High Court while upholding the prosecution initiated by income tax department held that burden lies on assessee to prove lack of willful default in filing Income Tax Return (ITR).
The bench of Justice S.Vishwajith Shetty has observed that in view of Section 278E of the Income Tax Act, in any prosecution for offence under the act, the court has to presume the existence of mens rea and it is for the accused to prove the contrary and that too beyond reasonable doubt.
The court stated that prosecution for offence punishable under section 276CC of the Income Tax Act, 1961 can be initiated against an accused for willful and deliberate delay in filing the returns and since there is a presumption available under section 278E of the act with regard to the culpable mental status of the accused, it is for the accused to rebut the said presumption in accordance with law.
The respondent/department had filed four separate private complaints under section 200 of Cr.P.C against the petitioner herein for offence punishable under section 276CC of Income Tax Act 1961, after obtaining necessary sanction orders from the Competent Authority to prosecute the petitioner for the offence. Allegation against the petitioner was that, he had willfully failed to submit his income tax returns in time for the Assessment Years 2012- 13 to 2015-16 and committed the alleged offence.
The Magistrate, having taken cognizance of the alleged offence, had issued summons to the petitioner- accused.
The petitioner contended that, on receipt of notice under section 139 of the Act of 1961, petitioner had submitted his income tax returns for the assessment years 2012-13 to 2015-16. Since there was a delay in filing the returns, penalty was levied on the assessee which was paid by him. Therefore there was no occasion for the respondent-Department to initiate criminal prosecution as against the petitioner for the alleged offence.
The department contended that there was a delay in filing the income tax returns for the period from 2012-13 to 2015-16. Merely for the reason that the petitioner had submitted the income tax returns, it will not exonerate him from criminal prosecution. There is a presumption against the petitioner available under section 278E of the Income Tax act which is required to be rebutted by the petitioner in accordance with law before the Magistrate.
The court while dismissing the petition held that there is a presumption available as against the accused and the Court before which proceedings are initiated for offence punishable under section 276CC is required to raise a presumption against the accused and it is for the accused assessee to successfully rebut the said presumption by producing necessary material before the court, failing which he shall be liable to be punished.
Case Details
Case Title: Rajkumar Agarwal Versus Income Tax Department
Case No.: In Crl.P.No.201214/2023
Date: 16/01/2025
Counsel For Petitioner: Advocate Kadloor Satyanarayanacharya,
Counsel For Respondent: Advocate M. Thirumalesh
