📰 𝗝𝗵𝗮𝗿𝗸𝗵𝗮𝗻𝗱 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗖𝗿𝗶𝗺𝗶𝗻𝗮𝗹 𝗣𝗿𝗼𝘀𝗲𝗰𝘂𝘁𝗶𝗼𝗻 𝗤𝘂𝗮𝘀𝗵𝗲𝗱 𝗢𝘃𝗲𝗿 𝗗𝗲𝗹𝗮𝘆𝗲𝗱 𝗧𝗮𝘅 𝗙𝗶𝗹𝗶𝗻𝗴 𝗗𝘂𝗲 𝘁𝗼 𝗛𝗲𝗮𝗹𝘁𝗵 𝗜𝘀𝘀𝘂𝗲𝘀

📢 The court held, "Penalties under Section 271(1)(a) of the IT Act are quasi-criminal in nature, and criminal intent (mens rea) must be proven before imposing a penalty."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Suresh Kumar Agarwal vs Union of India 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: Criminal Misc. Petition No. 1553 of 2016 𝗗𝗮𝘁𝗲: 28-Aug-2022

𝗜𝘀𝘀𝘂𝗲: Suresh Kumar Agarwal faced criminal charges for a 17-month delay in filing his tax return for AY 2013-14, citing health problems and missing photocopies of documents. Despite having already deposited the tax and interest, the IT Department pushed for his prosecution under Section 276CC of the Income Tax Act.

𝗣𝗿𝗼𝗰𝗲𝗲𝗱𝗶𝗻𝗴𝘀: Agarwal defended his delay by explaining his health and documentation issues. The court found that the Income Tax Department's actions were excessive and highlighted that there was no criminal intent. The ITO had already extended the time for filing the return after levying interest, indicating satisfaction with the reasons for the delay.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Jharkhand High Court quashed the entire criminal proceedings, stating that no sentence could be imposed without establishing criminal intent (mens rea), especially since Agarwal had paid the tax and interest.

📜 This case highlights the importance of fair treatment for taxpayers, particularly when delays are caused by genuine issues like health or documentation. It also underscores the need for the tax authorities to offer support rather than resort to harsh prosecution in cases of minor infractions. Team GSTpanacea 7503031378