MAHADEVA NAIDU SONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee contends that the acquittal of the assessee in a prosecution under Section 276C of the Income-tax Act, 1961, four years after the date on which the Assessing Officer made the order under Section 271(1)(c) imposing penalty, should be regarded as having the effect of relieving the assessee of that penalty.

(2.) SECTION 276C provides for prosecution for wilful attempt to evade tax and reads thus :

(3.) IN the case of proceedings under Section 271(1)(a) of the Act, however, the intention of the Legislature is to emphasise the fact of loss of revenue and to provide a remedy for such loss, although no doubt an element of coercion is present in the penalty. IN this connection, the terms in which the penalty falls to be measured are significant... IN our opinion, there is nothing in Section 271(1)(a) which requires that mens rea must be proved before penalty can be levied under that provision." (p. 458)