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2023 (9) TMI 32 - TELANGANA HIGH COURTProsecution of offence u/s 276-B r/w 278B(2) - belated payment of TDS into the Central Government Treasury - A1 company had deducted at source on more than 2664 occasions but the same was deposited with a time variation of 1 to 12 months - HELD THAT:- The Hon’ble Supreme Court in the case of Mohd. Iqbal Ahmed v. State of Andhra Pradesh [1979 (1) TMI 238 - SUPREME COURT] held that it is well settled that any case instituted without a proper sanction must fail because this being a manifest defect in the prosecution, the entire proceedings are rendered void ab initio. Prosecution launched without a valid sanction, it was held that the cognizance taken by the Special Judge was without jurisdiction and proceedings were quashed. The sanction was granted without considering payment of interest; and Late filing fee of TDS. Further reply which was filed on 01.02.2018 in the office of Additional Commissioner, Income Tax (TDS), Hyderabad is also not considered. The competent authority not considering the same amounts to not considering the facts of the case and granting sanction which is invalid. Apparently sanction was sought by suppressing facts or deliberately omitted. It is not disputed that the Sanction mentioning that the penal interest not being paid and the petitioners not replying to show cause is apparently wrong. For the said reason of launching prosecution on the sanction, which according to this Court is invalid, the proceedings before the learned Special Court are liable to be quashed.
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