Section 276CC: Prosecution for Not Filing Income Tax Return
At a Glance
| Parameter | Legal Position |
|---|---|
| Offence | Wilful failure to furnish return of income within due date |
| Punishment | Rigorous imprisonment: 3 months to 2 years + fine |
| When rigorous imprisonment extends to 7 years | If tax sought to be evaded exceeds ₹25 lakh |
| Mens rea requirement | “Wilfully fails” — deliberate non-filing required |
| Exception 1 | Tax liability does not exceed ₹25 lakh |
| Exception 2 | Advance tax paid ≥ 90% of assessed tax for that year |
| Can prosecution proceed despite pending appeal? | Yes — Supreme Court in Sasi Enterprises vs. ACIT (2014) |
| Compounding available? | Yes — all offences now compoundable per CBDT October 2024 |
| Prior prosecution on record | Affects compounding eligibility (Category A/B classification) |
| IT Act 2025 equivalent | Chapter XXII |
What Section 276CC Punishes — And What It Does Not
Section 276CC targets the wilful failure to file a return of income. The word “wilfully” is central — not every missed filing deadline attracts prosecution. A forgotten return, an inadvertent non-filing, or non-filing during a period of genuine incapacity is not Section 276CC territory.
The word “wilful” implies the existence of a particular guilty state of mind and imports the concept of mens rea. A prosecution under Section 276CC of the Income Tax Act, 1961 for failure to file a return of income could be initiated even while appellate proceedings were pending — the Supreme Court in Sasi Enterprises vs. ACIT held that prosecution proceedings under Section 276CC could be initiated even while appellate proceedings were pending. Income Tax India
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