TMI Blog2002 (3) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... shal Kishore, was the acting partner of the firm. After the default was pointed out to the firm and its partner by the non-applicant-Department, they deposited the amount of tax deducted at source from their own account and submitted that this was the first year of their business, they were not aware of the statutory requirement in this regard under the Income-tax Act. It appears that the learned trial court has taken cognizance only against Kaushal Kishore, the applicant, and framed the charge punishable under section 276B of the Income-tax Act. The submission of learned counsel for the applicant, is that prior to April 1, 1989, the provision under section 276B was prescribing that if a person fails to deduct or after deducting fails t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er contended that section 80E has been omitted by the amending Act of 1987, reference to the said section 276B is no longer necessary. Failure to deduct tax at source now attracts penalty under the new section 271C. In view of the aforesaid changed law that on the date when the complaint was filed, failure to deduct tax was no more an offence. Only if the tax was deducted, but not paid, then it was an offence and for this the law has provided for imposition of penalty. In the case of the petitioner's firm, it did not deduct tax deducted at source, but had still deposited it. Therefore, no offence can be made out against the accused and the complaint was liable to be quashed by the learned Magistrate. He relied on the judgments reported in P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 6 or in special Acts may modify the position. Thus the operation of repeal or deletion as to the future and the past largely depends on the savings applicable. In a case where a particular provision in a statute is omitted and in its place another provision dealing with the same contingency is introduced without a saving clause in favour of pending proceedings then it can be reasonably inferred that the intention of the Legislature is that the pending proceeding shall not continue but a fresh proceeding for the same purpose may be initiated under the new provision." In the present matter, there is no saving clause for applicability or inapplicability of the amended Act. This is the general rule of provision of interpretation of statu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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