Magistrate court

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If you're prosecuted in Magistrate Court for not paying self-assessment tax, simply paying the tax or arranging instalments doesn't automatically close the case. The offence is compoundable, meaning it can be settled by paying 100% of the evaded tax, but this requires the department's agreement. If the prosecution doesn't mention wilful failure, you might consider applying to the High Court to quash the complaint, potentially on other grounds too.

Ajay shah

Ajay shah (Querist)

30 August 2022 If the self assessment tax not paid and person is prosecuted in magistrate court. If the person pays the self assessment tax in full or in installment, how the court close the prosecution against the assessment. The person filed ITR in the year 17 18 Ay. The amount is Rs. 156000.00

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

31 August 2022 Payment after filing of complaint wont result in closing of complaint automatically. Offence however is compoundable on payment of 100% of tax sought to be evaded. Also if there are no averments in complaint as regards failure being wilfully, one could approach High Court for quashing of complaint. Quashing may be available on some other grounds as well.

Ajay shah

Ajay shah (Querist)

31 August 2022 Thank you for your reply. I called person and told me he can make payment in 3 installment in court.before next date. But now he is confused as I sent your reply.

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)

31 August 2022 Well, just that give 3 installments offer to department and say you will pay subject to department agreeing to compounding. pay if department agrees. Confusion and complexities will arise only if department does not agree to compounding.

Adv. Ravish Bhatt, ADIT, CIOT

Adv. Ravish Bhatt, ADIT, CIOT (Expert)