In the case of ITO v. Saloni Jewellers Pvt. Ltd., the defendants were found guilty of the offense under Section 276CC of the Income-tax Act, which pertains to the failure to furnish a return of income within the prescribed timeframe. The directors of the firm were held responsible for this violation and were subsequently sentenced to six months of rigorous imprisonment. Here is a more detailed account of the case:
During the assessment year 2014-2015, the accused, Saloni Jewellers Pvt. Ltd., had taxable income. However, they failed to file their income tax return within the specified time frame. The director of the company submitted a written explanation, claiming that the company’s profit had decreased during the relevant period, and the accused faced financial difficulties, which led to the delay in filing the return.
The explanation provided by the accused was deemed unsatisfactory by the Commissioner, prompting the filing of a complaint with the competent magistrate court. The key piece of evidence in the case was the audit report, a document belonging to the accused, which was not disputed by them. This report contained information regarding the amount involved. Furthermore, the accused’s balance sheet indicated a profit of Rs. 10,00,00,000/- and a turnover of Rs. 1,19,00,00,000/-.
Despite having the means to file the return, the accused failed to do so. The defense witness admitted that the audit report was discovered at the business premises of the accused. In light of these facts, the court concluded that the accused had not provided sufficient evidence to justify the delay in filing the return. Additionally, the court considered the accused to be habitual offenders.
Consequently, the court imposed a minimum sentence of six months of rigorous imprisonment in accordance with Section 276CC of the Income-tax Act. The specific details of the case, including the case number (C. C. NO.276/SW/2018 dt. 17-4-2023) and the assessment year (2015-16), were mentioned