Income Tax Demand
This query is : Resolved
Quick Summary
12 August 2020
My company namely Pancham Jewellers Private Limited was searched u/s 132 of Income Tax Act on 12/04/2017 and concluded on 31.12.2019 with 11 crore penalty inclusive of penalty imposed on family members on their individual assessment.
It is informed that the company did not pay taxes even the penalty imposed on family members during proceeding could not be paid.
The directors and family members are also not willing to pay taxes and company has become NPA.
There is no immovable property in the name of company and on the name of directors. The property in the name of other members is mortgaged with bank and shall be auctioned.
Now question is:- How income tax can make recovery from company, directors and family members, if they have no immovable and movable property and also have no capacity to pay taxes.
It is informed that the company did not pay taxes even the penalty imposed on family members during proceeding could not be paid.
The directors and family members are also not willing to pay taxes and company has become NPA.
There is no immovable property in the name of company and on the name of directors. The property in the name of other members is mortgaged with bank and shall be auctioned.
Now question is:- How income tax can make recovery from company, directors and family members, if they have no immovable and movable property and also have no capacity to pay taxes.
13 August 2020
In such a case no recovery can be made.
13 August 2020
In this case, is prosecution proceedings may be started.
13 August 2020
The following offences committed by a person are punishable:
(i) Removal, parting with or otherwise dealing with books of accounts, documents, money, bullion, jewellery or other valuable article or thing put under restraint during the search. [Section 275A]
(ii) Fraudulent removal, concealment, transfer or delivery of any property or any interest in the property with the intention to thwart recovery of tax. [Section 276]
(iii) Failure on the part of a liquidator or receiver of a company to give notice of his appointment to the Assessing Officer or failure to set apart amount notified by the Assessing Officer, or parting away of company’s properties in contravention of income-tax provision. [Section 276A]
(iv) Failure to enter into written agreement or failure to furnish the statement of immovable property intended to be transferred u/s.269UC, or failure to surrender or deliver the property u/s.269UE, purchased by the Appropriate Authority or doing or omitting to do anything u/s.269UL, which will have the effect of transfer of property without the permission of the Appropriate Authority (under the provisions of Chapter XX-C) [Section 276AB]
(v) Failure to pay to the credit of the Central Government the tax deducted at source. [Section 276B]
(va) Failure to pay the tax collected at source. [Section 276BB]
(vi) Willful attempt to evade any tax, penalty or interest [Section 276C(1)]
(vii) Willful attempt to evade the payment of any tax, penalty or interest levied under Income Tax Act. [Section 276C(2)]
(viii) Willful failure to furnish in due time return of income. [Section 276CC)]
(viiia) Failure to furnish return of income in Search Cases as required under section 158BC [Section 276CCC]
(ix) Willful failure to produce accounts and documents as directed by issue of notice under section 142(1) [Section 276D]
(x) Willful failure to get the accounts audited as directed by the Assessing Officer under section 142(2A). [Section 276D]
(xi) Making of a statement in verification or delivery of an account or statement which is false and which the concerned person knows or believes to be false or does not believe to be true. [Section 277]
(xii) Abetting or inducing another person to make and deliver an account or statement or declaration relating to any taxable income which is false and which he either knows or believes to be false. [Section 278]
(xiii) Punishment for 2nd & subsequent offences in cases of certain defaults. [Section 278A]
(xiv) No person shall be punished for any failure if he proves that there is reasonable cause failure. [Section 278AA].
(i) Removal, parting with or otherwise dealing with books of accounts, documents, money, bullion, jewellery or other valuable article or thing put under restraint during the search. [Section 275A]
(ii) Fraudulent removal, concealment, transfer or delivery of any property or any interest in the property with the intention to thwart recovery of tax. [Section 276]
(iii) Failure on the part of a liquidator or receiver of a company to give notice of his appointment to the Assessing Officer or failure to set apart amount notified by the Assessing Officer, or parting away of company’s properties in contravention of income-tax provision. [Section 276A]
(iv) Failure to enter into written agreement or failure to furnish the statement of immovable property intended to be transferred u/s.269UC, or failure to surrender or deliver the property u/s.269UE, purchased by the Appropriate Authority or doing or omitting to do anything u/s.269UL, which will have the effect of transfer of property without the permission of the Appropriate Authority (under the provisions of Chapter XX-C) [Section 276AB]
(v) Failure to pay to the credit of the Central Government the tax deducted at source. [Section 276B]
(va) Failure to pay the tax collected at source. [Section 276BB]
(vi) Willful attempt to evade any tax, penalty or interest [Section 276C(1)]
(vii) Willful attempt to evade the payment of any tax, penalty or interest levied under Income Tax Act. [Section 276C(2)]
(viii) Willful failure to furnish in due time return of income. [Section 276CC)]
(viiia) Failure to furnish return of income in Search Cases as required under section 158BC [Section 276CCC]
(ix) Willful failure to produce accounts and documents as directed by issue of notice under section 142(1) [Section 276D]
(x) Willful failure to get the accounts audited as directed by the Assessing Officer under section 142(2A). [Section 276D]
(xi) Making of a statement in verification or delivery of an account or statement which is false and which the concerned person knows or believes to be false or does not believe to be true. [Section 277]
(xii) Abetting or inducing another person to make and deliver an account or statement or declaration relating to any taxable income which is false and which he either knows or believes to be false. [Section 278]
(xiii) Punishment for 2nd & subsequent offences in cases of certain defaults. [Section 278A]
(xiv) No person shall be punished for any failure if he proves that there is reasonable cause failure. [Section 278AA].
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