Answer

1. F

   Facts

   Once a complaint is filed, the case is before a criminal court and you must appear as summoned. You can still apply for compounding under the 2024 guidelines. A tax lawyer should handle the court side.

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
   • CBDT Guidelines for Compounding of Offences, 17 October 2024Revised guidelines for compounding offences, dated 17 October 2024; no fixed 36 month limit for applying
   • Sec 278E, Income-tax Act 1961Court presumes a culpable mental state, but you can prove the contrary
3. A

   Analysis

   Do not ignore the summons, as non-appearance can lead to a warrant. Engage a lawyer to represent you, and in parallel file pending returns and pay dues. The 2024 compounding guidelines allow applications after the complaint is filed, and a compounding order ends the prosecution. In court, the defence will focus on lack of wilful default and the statutory exceptions.

4. C

   Conclusion

   1. 1Engage a lawyer and appear on the summons date.
   2. 2File pending returns and pay tax.
   3. 3Apply for compounding.
   4. 4Inform the court once compounding is granted.

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