9911796707
TMI Blog2023 (7) TMI 409X X X X Extracts X X X X X X X X Extracts X X X X ..... taken under Sections 276B and 278B of the Income Tax Act, 1961. 2. The allegation against the petitioners as set out in the complaint is that petitioner no. 1 had deducted TDS amount of Rs. 17,99,629/- for the financial year 2014-15 (assessment year 2015-16) but had failed to deposit the same in time to the credit of Central Government as per the provisions of Income Tax Act, 1961. The chart with respect to quarter and the amount so deposited is set out which reads as under:- Quarter Form type Chln. No. Deductee Ser. No. PAN PAN ---- Due Date Date of Deposit TDS/TCS Deposited Last Payment Principal Amount Interest on Late Pmnt Date of Deduction Period of Delay (In Month) Q 1 26Q 1 1 CQAPS6200G USMA---June 2014 7-Jul-201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioners were tied down by the condition imposed by TRA agreement and, therefore, there was some delay in depositing the TDS amount in the Central Government. 5. The second plea is that as per the circular bearing F. number 255/339/79-IT(Inv.) dated 28.05.1980, complaint should be filed within sixty days but this complaint has been filed after two years after the TDS amount with interest was already deposited. 6. Reliance has been placed on 2022 SCC Online Jhar 537. It is submitted that no specific averment has been made regarding the complicity of the Director. Reliance has been placed on 2022 SCC Online Jhar 821. In Cr.M.P. Nos. 3970 of 2018, 3972 of 2018 and 634 of 2021, cognizance has been quashed by this Court. This Court has held th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount in default has also been deposited in the meantime to the Credit of the Government. No such consideration will, of course, apply to levy of interest under Section 201(1A)." 10. Relying on this circular, it is submitted that there was no criminality on the part of the petitioner as the amount had been credited in the account of interest before issuance of notice. Lastly, it is submitted that Section 278-AA of the Act specifically provides that no person shall be punishable for any failure referred to in the said provisions if he proves that there was reasonable cause for such failure. 11. The circular/instructions of Central Board of Direct Taxes (CBDT) as contained in F. number 255/339/79-IT(Inv.) dated 28.05.1980 has been relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - -do- -do- 5.2 The time lines given above should be followed as far as possible. However, any deviation from the time lines shall not render prosecution proceedings barred by limitation. The Pr. CCIT/ CCIT (TDS) should monitor progress of the cases identified for processing for prosecution particularly cases in which the timelines have not been followed." In consonance with the guidelines, the notice for prosecution after default was served upon the petitioner-Company for default for the years 2014-15 on 30.11.2016. 13. It is further submitted that before initiating prosecution for not depositing the TDS amount, notice(s) were issued to the petitioner by the Assessing Officer on 30.11.2016, 21.12.2016 and then on 20.06.2017. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the debt by IARC, petitioner no. 1 had lost all control over utilization of its fund and payments to be made. 18. Further due restrictions were put in place by TRA agreement, the petitioner no. 1 was not in a position to take instant and prompt decision as all payments have to be rectified by IARC. The department has not taken any stand on this and controverted this part of the averment made in the petition in its counter affidavit. It has been argued on behalf of the Department that this is a subject where it can be considered at the stage of trial. But the question for consideration will arise only when there is denial of the said plea of reasonable cause. The petitioner claims that the notice to deposit the amount was issued on 14.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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