TMI Blog2020 (3) TMI 1119X X X X Extracts X X X X X X X X Extracts X X X X ..... that the petitioners have not cleared the entire due. Even otherwise, the interim order of the Court dated 08.01.2016, goes to show that only after the coercive measure of freezing the petitioners account, the Income Tax Department were able to recover about ₹ 8 Crores. While so, the petitioners, who have failed to pay TDS in time and what little paid was paid with delay and interest cannot stale the prosecution on frivolous and flimsy ground. In this case, the petitioners though deducted tax at source, not paid the same within the time prescribed. This action of initiating criminal prosecution after obtaining sanction from the appropriate authority cannot be termed as violative of principles of natural justice. Refer the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proceedings in C.C.No.23 of 2016 dated 27.11.2015 relating to Assessment Year 2013-14 on the file of the first respondent in the Court of the Judicial Magistrate No. 1, Tiruchirappalli. 2.According to the petitioners, earlier when the Income Tax Department took coercive action of freezing of their bank account for non-payment of TDS due, W.P.No.39484 of 2015 was filed and interim order was granted on 11.01.2015. While so, pending disposal of the said writ petition, the Chief Commissioner of Income Tax has accorded sanction to prosecute the petitioners invoking his power under Section 279 of Income Tax Act. The said sanction order dated 04.11.2015 is challenged in this writ petition on the ground that when the representation of the petit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ropriate authority cannot be termed as violative of principles of natural justice. 5.It is relevant at this juncture to refer the case of Madhumilan Syntex Ltd., and another Vs. Union of India and another reported in 2007 (11) SCC 297, wherein the Directors of the Company approached the Court seeking quash of the criminal prosecution on the ground that the tax deducted at source was paid with interest and there was reasonable cause of the belated payment, the Honourable Supreme Court after extracting the relevant provisions of the Income Tax Act, has held as follows: ''47.The next contention that since TDS had already been deposited to the account of the Central Government, there was no default and no prosecution can be ord ..... X X X X Extracts X X X X X X X X Extracts X X X X
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