Question

PRINCIPLE: Ignorance of law is no excuse.
FACTS: A fails to file his income-tax returns for ten years. The Income-tax department issues to him notice to show cause why proceedings should not be initiated against him for the recovery of the income-tax due from him with interest and penalty.
ADVISE.

• A. He may take the plea that his advocate had advised him not to file the return as his income was not taxable
• B. He may request the department to waive the interest and penalty
• C. A must pay the tax due as ignorance of law cannot be ground of defence
• D. None of the above

Answer 1

Answer: (C)

A must pay the tax due as ignorance of law cannot be ground of defence

Ignorantia legis neminem excusat or ignorance of law is no excuse states that merely because a person is not aware of any law cannot escape liability under that law for not knowing its contents. It applies to all types of laws, civil,criminal as well as statutory laws. Therefore, even in the absence of any intention to evade taxes the person can escape criminal liability but not the liability to pay the taxes.

Here in this case, A failed to file his tax returns for ten years and tax paying is a legal liability and hence, ignoring it cannot be a ground of defence.