SURESH KUMAR AGARWAL Vs. UNION OF INDIA

JUDGEMENT

(1.) Heard Mr. D.V. Pathy, learned counsel for the petitioner and Ms. Amrita Sinha, learned counsel for the opposite parties.

(2.) This petition has been filed for quashing the entire criminal proceedings including the order taking cognizance dtd. 18/3/2016 passed by the learned Special Judge, Economic Offence, Dhanbad in connection with Complaint Case being C.O. Case No.01 of 2016, whereby, cognizance has been taken against the petitioner under Sec. 276CC of the Income Tax Act, 1961, pending in the court of the learned Special Judge, Economic Offence, Dhanbad.

(3.) The opposite party no.2 has filed the complaint case being C.O. Case No.01 of 2016 before the court of the learned Special Judge, Economic Offence, Dhanbad against the petitioner under Sec. 276CC of the Income Tax Act, 1961 pertaining to the Assessment Year 2013-14 alleging therein that a search was conducted in the case of accused on 19/2/2014 and subsequent case and his case was centralized with the Commissioner of Income Tax, Dhanbad vide order dtd. 27/8/2014. The accused Suresh Kumar Agarwal was an assessee in his individual capacity within the meaning of Income Tax. The income of Suresh Kumar Agarwal was taxable within the meaning of Income Tax Act for the relevant assessment year 2013-14 and as such he had to file his income tax return in due time i.e. within 15 days of receipt of notice under Sec. 153A dtd. 4/9/2014 before the Income Tax Department, Central Circle, Dhanbad. The accused was fully aware of the fact that he had to file his Income Tax return in due time. He willfully, deliberately, knowingly and having mens rea in his mind failed, neglected and avoided to file his Income Tax return for the assessment year 2013-14 within 15 days of notice under Sec. 153A dtd. 4/9/2014 with intent to escape from tax liabilities which was chargeable and imposable on him. The accused Suresh Kumar Agarwal ultimately filed Income Tax return for the assessment year 2013-14 on 4/2/2016 in ITR-4 showing total income from all sources at Rs.81,63,930.00 after lapse of almost 17 months without reasonable cause and excuse. The said assessee did not make any prayer along with the I.T. Return nor filed any petition for condonation of delay showing legal, reasonable and justified reasons as to why the delay of 17 months was caused in filing return for the assessment year 2013-14. The complainant served a notice dtd. 19/3/2015 fixing compliance on 6/4/2015 as to why prosecution under Sec. 276 CC of the Income Tax Act should not be launched against the accused. The accused kept mum from the date of the receipt of notice and no compliance was made. It was further alleged that after examining all the relevant documents, it is crystal clear that the accused deliberately, willingly, intentionally, deliberately and having mens rea in his mind failed, neglected and avoided to file his return on income for the assessment year 2013-14 in due time i.e. within 15 days of receipt of notice under Sec. 153A dtd. 4/9/2014. The Principal Commissioner of Income Tax (Central), Patna after considering all the facts and circumstances applied his judicial mind and opined that the accused did not file his return of income in due time i.e. within 15 days of receipt of notice under Sec. 153A dtd. 4/9/2014 rather filed his return on 4/2/2016 without reasonable cause and excuse. The letter dtd. 10/8/2015 for initiation of prosecution under Sec. 276CC of the Income Tax Act was issued and the accused in response thereto vide letter dtd. 13/8/2015 requested for 30 days time, which was duly considered and compliance was fixed on 18/9/2015, but neither accused nor his authorized representative appeared. The final show cause was issued on 29/9/2015 and in response thereto, the accused vide letter dtd. 12/10/2015 requested for 20 days time for preparation of return and filing of explanation and case was adjourned to 27/10/2015. On 27/10/2015, the accused requested for one month more time showing festivals like Diwali and Chhath, but the same was rejected by the Principal Commissioner of Income Tax (Central), Patna. The Principal Commissioner of Income Tax (Central), Patna vide letter dtd. 2/11/2015 granted sanction under Sec. 279(1) of the Act for launching prosecution under Sec. 276CC of the Income Tax Act.