CBDT has asked Income Tax Department to identify the potential cases of non filing of income tax return (ITRs) for AY 2013-14 and initiate prosecution u/s 276CC if the conditions prescribed are fulfilled.
In a letter issued by Directorate of Income tax (Systems) dated 22/03/2016, Pr. Chief Commissioner of Income Tax (CCA) has informed that the last date for filing the return of income for the AY 2013-14 was 31-03-2015 and under Non Filers Monitoring System (NMS) Cycle-3, taxpayers who have neither filed the return of income nor have submitted the response have been identify as potential prosecution cases u/s 276CC. The functionality to see these taxpayers have been enabled.
Prosecution u/s 276CC
It would be most appropriate to add here that the said section 276CC provides for prosecution for failure to furnish return of income before the expiry of the relevant assessment year or the time allowed in a notice u/s 142 or 148. The defaulter assessee is punishable with both fine and imprisonment except where the net tax payable do not exceed Rs. three thousand..