Answer

1. F

   Facts

   Prosecution under Sec 276CC needs a wilful failure. A genuine reason like serious illness, a death in the family or no taxable income can show the failure was not wilful. The court presumes a guilty mind, so you must prove the reason.

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 278E, Income-tax Act 1961Court presumes a culpable mental state, but you can prove the contrary
3. A

   Analysis

   Sec 278E presumes a culpable mental state, but you can rebut it with evidence. Hospital records, discharge summaries, or proof that your accountant had the papers and failed, help show the default was not deliberate. Combine this with immediate filing of the pending returns and payment of tax. The stronger and better documented the reason, the better your chance of the matter being dropped.

4. C

   Conclusion

   1. 1Collect documents showing the reason for not filing.
   2. 2File the pending returns and pay tax.
   3. 3Write a reply explaining the reason with dates.
   4. 4Attach evidence and the acknowledgements.

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