Sec. 276 (c) (2) of Income Tax Act, 1961— Offences—  the petitioner was an assessee on the file of the Deputy Commissioner of Income Tax, A search has been conducted under Section 132 of Income Tax Act on 18.12.2012 and during the search, the petitioner disclosed undisclosed income for the assessment year 2013-2014. Further, it was noticed that the accused did not file his return of income for the assessment year 2013-2014 as required under Section 139 (1) of the Income Act. He ought to have filed return of income on or before 05.08.2013. But he belatedly filed his return of income for the assessment year 2013-2014 only on 31.01.2014 admitting his huge income. Thus, it is the act of the wilful failure on the part of the assessee for non- payment of huge tax liability, and he committed offence under Section 276(c ) (2) of the Income Tax Act and as such the respondent issued show cause notice on 16.08.2015. Even then, the accused has not paid the huge tax liability at the time of filing the return of income. Thus, he has committed offence under Section 276 (c ) (2) of the Income Tax Act and lodged the complaint.  The assessee voluntarily disclosed the undisclosed income to the respondent on the inspection conducted under Section 132 of the Income tax Act, 1961 on 18.12.2012. Therefore, there is no intention from the assessee for wilful evading of payment of tax.
The assessee had paid the entire tax amount on 18.03.2018 and the respondent had also acknowledged the same by the acknowledgment dated 24.03.2018. Therefore, the offence under Section 276 (c ) (2) of the Income Tax Act cannot be sustained as against the assessee and it is liable to be quashed.  Accordingly, the entireproceedings was quashed. --- GHILSULAL MEGHRAJ KOTHARI vs. Deputy CIT.[2020] 23 ITCD Online 28 (MAD)