Answer

1. F

   Facts

   Yes. CBDT Circular 24/2019 says that where the tax sought to be evaded is ₹25 lakh or less, prosecution for non-filing needs prior approval of a collegium of two senior officers. This aims to avoid prosecution in small cases.

2. P

   Provisions and law

   • CBDT Circular 24/2019, dated 9 September 2019Where the tax sought to be evaded is ₹25 lakh or less, prosecution for non-filing needs prior approval of a collegium of senior officers
   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
3. A

   Analysis

   With ₹6 lakh of tax, your case falls under the ₹25 lakh threshold, so a collegium of Chief Commissioner or Director General rank officers must approve prosecution. Officers usually consider the reply, filing status and payment before deciding. Filing returns and paying tax quickly strengthens the case for dropping prosecution. You can mention the circular politely in your reply.

4. C

   Conclusion

   1. 1Work out the tax involved.
   2. 2Mention the circular if it is ₹25 lakh or less.
   3. 3File returns and pay tax.
   4. 4Reply showing compliance and reasons.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.