Answer

1. F

   Facts

   Sec 276CC is about wilfully not filing a return. Sec 276C is about a wilful attempt to evade tax, such as hiding income or false entries. Sec 276C is more serious and needs stronger evidence.

2. P

   Provisions and law

   • 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
   • Sec 276C (now Sec 478)Prosecution for a wilful attempt to evade tax
   • Sec 278E, Income-tax Act 1961Court presumes a culpable mental state, but you can prove the contrary
3. A

   Analysis

   Sec 276C (now Sec 478) targets acts like concealment and false statements, while Sec 276CC (now Sec 479) targets the failure to file. If the department alleges both, it likely thinks income was hidden, not just a return missed. Your reply must cover both: why returns were not filed and that no income was concealed, with full disclosure now. This is a case for a tax lawyer.

4. C

   Conclusion

   1. 1Read which acts are alleged under each section.
   2. 2Gather proof of income and its disclosure.
   3. 3File and pay before replying.
   4. 4Engage a lawyer for the reply.

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