Bombay High Court

Pune Magistrate: Businessman's Tax Evasion Charges Dropped Due to Financial Struggles

Updated
Oct 22, 2025 10:40 PM
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Quick Summary: Vilas Babanrao Kalokhe was accused of not paying his income tax on time. The court decided that he didn't intentionally avoid paying, so the case against him was dropped.

The Tax Dispute

Vilas Babanrao Kalokhe, who runs a business making stone and cement pipes, was accused by the Income Tax Department of not paying his taxes when he filed his return for the year 2022-2023. He owed Rs. 94,22,300 but paid Rs. 95,89,000 later on January 16, 2023.

"The taxpayer mentioned some financial problems within the organization and expressed difficulty in paying the tax."

Legal Proceedings

The Income Tax Department took the case to court, claiming Vilas purposely avoided paying taxes. They filed a complaint in Pune, and the Magistrate started legal action against him under Section 276 C (2) of the Income Tax Act.

Arguments in Court

  • Vilas's Side: He argued that he did not purposely avoid paying taxes. He mentioned financial difficulties and said that he had paid the taxes with interest later.

  • Department's Side: They claimed Vilas chose to spend money on other things instead of paying his taxes and that he had enough money to pay on time.

Court's Decision

Judge S. M. Modak looked at the case and decided that Vilas did not purposely avoid paying taxes. The judge noted that the delay in payment was due to financial problems, not intentional avoidance.

"The statements in the complaint are not enough to prove that the taxpayer was willfully avoiding payment."

Summary of the Verdict

The court decided that continuing the case would be a misuse of the legal system. Therefore, the complaint and the order for legal action were canceled, allowing Vilas to move past this legal issue.