Bombay HC Quashes Tax Evasion Case Against Abu Jani, Sandeep Khosla; Says Delayed Payment Not Wilful Evasion
Mumbai, September 12, 2026: The Bombay High Court has quashed criminal proceedings against fashion designers Abu Jani and Sandeep Khosla and their company, holding that merely delaying payment of tax does not amount to a “wilful attempt” to evade tax unless there is a deliberate act showing an intention to avoid payment. Justice RR Bhonsale, on Friday, said that Section 276C(2) of the Income Tax…
The Bombay High Court has dismissed criminal proceedings against fashion designers Abu Jani and Sandeep Khosla, stating that delayed payment of taxes does not constitute "wilful evasion" of tax unless there is a deliberate act showing an intention to avoid payment. The court ruled that Section 276C(2) of the Income Tax Act requires a conscious and positive act with the intention to evade tax, and that a mere non-payment or delayed payment cannot be included within this provision.
The case was brought by the Income Tax Department against the company and its directors for failing to pay a self-assessment tax of Rs 5.27 lakh for the 2017-18 assessment year. However, the company paid the entire amount on October 19, 2018, just three days after receiving a show-cause notice from the department. The court noted that the payment, though delayed, demonstrated no intention to evade tax and that continuation of the prosecution would amount to a "manifest abuse of the process of law".
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