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2002 (11) TMI 84 - HC - Income TaxFailure To Deduct Tax At Source And Deposit - order of conviction - offence punishable under section 276B/278B - On behalf of the Income-tax Department, arguments were advanced before the Supreme Court that in view of the provision of section 6 of the General Clauses Act, pending proceedings will be saved in the absence of any specific provision in the amended Act, since the amended Act is silent about retrospective applicability. The Supreme Court has answered this, holding that, section 6 of the General Clauses Act will not apply to omission of any provision in the Act but will apply only to repeal. In the present case penal provision was completely omitted, therefore, it would be considered as if it had never been in the statute book and for the same no prosecution could be launched or continued. In view of the aforesaid legal position about the effect of applicability of the Amendment Act of 1987 omitting the provision 276B from the statute book, the applicants could not have been held guilty of the offence on the date of delivery of judgment by the trail court on April 12, 1996. On that date, the act of not deducting and not depositing tax deducted at source, was not an offence and for this only penalty was prescribed. Therefore, conviction and sentence of the applicants as imposed by the trial court is hereby set aside.
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