Showing the failure was not wilful

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.

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.