Tax notices + litigation · Income Tax Notice
Section 276C / 276CC (now 478 / 479): Prosecution notice (when it becomes criminal)
Updated . Every paid answer is checked by a CA. Free AI answers are labelled until a CA verifies them.
Facts
Prosecution under the IT Act is rare but real. Sec 276C (now Sec 478, Income-tax Act 2025): Willfully attempting to evade tax, imprisonment 3 months to 7 years + fine. Sec 276CC (now Sec 479): Failure to file ITR, imprisonment up to 7 years if tax evaded exceeds ₹25L. Sec 277: Submitting false statement or document, imprisonment 6 months to 7 years.
Provisions and law
- IT Act 1961, Sec 276C (now 478
- tax evasion), Sec 276CC (now 479
Analysis
Key distinction, wilful vs negligent: Prosecution requires wilful act. A genuine mistake or negligent omission is not sufficient for prosecution. If you can demonstrate no wilful intent, prosecution is difficult to sustain. Compounding available: Sec 279(2) allows compounding (settlement without trial) on payment of tax, interest, penalty + a compounding fee. Apply for compounding before charge-sheeted.
Conclusion
Talk to a Savvy for the exact next step on your case.
A Savvy can do this for you
Updated return, ITR-U, Sec 263(6) (old 139(8A))
₹2,999
Get this doneAsk a Savvy on WhatsAppGeneral guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.