| Case ID |
0098b492-ad78-44c7-b881-8a22a9a22fda |
| Body |
View case body. Login to View |
| Case Number |
D-2741 of 1987 |
| Decision Date |
Jan 01, 1987 |
| Hearing Date |
Jan 01, 1987 |
| Decision |
The court held that Section 276B of the Income-tax Act, 1961 applies even if the tax has been deposited to the credit of the Central Government before filing a complaint. Mens rea is not a necessary ingredient of the offence under section 276B, and a firm can be prosecuted under this section despite not being a natural person. The court also clarified that section 194A(4) does not allow for adjustments if the tax was not deducted during the financial year. Consequently, the revision petition was dismissed, upholding the trial court's finding that a prima facie case under section 276B had been established. |
| Summary |
This case revolves around the interpretation of sections 276B and 194A of the Income-tax Act, 1961. The Delhi High Court ruled on the obligations of a firm regarding the deduction and payment of income tax, highlighting that failure to deduct tax could lead to prosecution under section 276B, irrespective of prior tax deposits. The court emphasized the absolute liability imposed by these sections, negating the necessity for mens rea in such offences. This ruling clarifies the legal responsibilities of firms under tax law, reinforcing the principle of strict liability in cases of tax deduction failures. The implications of this case are significant for tax compliance and enforcement, making it essential for legal practitioners and firms to understand their obligations thoroughly. The court's decision aligns with the broader framework of tax law, ensuring accountability among entities responsible for tax deductions. |
| Court |
Delhi High Court
|
| Entities Involved |
Not available
|
| Judges |
G.C. Jain, J.
|
| Lawyers |
R.N. Mathur,
D.K. Jain
|
| Petitioners |
Rishikesh Balkishandas
|
| Respondents |
I.D. Manchanda, Income Tax Officer
|
| Citations |
1987 SLD 3290 = (1987) 167 ITR 49
|
| Other Citations |
State of Punjab v. Jullundur Vegetables Syndicate [1966] 17 STC 326 (SC),
Municipal Corpn. of Delhi v. J.B. Bottling Co. (P.) Ltd. [1975] Crl. Law Journal 1148 (Delhi) (FB),
Rameshwar Dass Chottey Lal v. Union of India ILR [1969] Delhi 1196,
D.C. Gael v. B.L. Verma [1974] 93 ITR 63 (Delhi),
State of Maharashtra v. Jugmunder Lal AIR 1966 SC 940,
State of Karnataka v. Pratap Chand [1981] 128 ITR 573 (SC),
State of Maharashtra v. Mayer Hans George AIR 1965 SC 722
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
276B,
194A(4)
|