Case Law Analysis
|Madras High Court
Section 276C(2) IT Act | Mens Rea Mandatory for Tax Evasion Prosecution : Madras HC Quashes Case Without Deliberate Intent
Madras High Court rules that prosecution under Section 276C(2) of the Income Tax Act requires proof of wilful intent to evade tax, not mere non-payment. The court held that financial distress or inadvertent default does not attract penal provisions, reinforcing that mens rea is a prerequisite for criminal liability in tax evasion cases.